FSDC sub committee discusses bankassurance, collective investment schemes
07 August 2013
The sub-committee of the Financial Stability and Development Council (FSDC) met in Mumbai today to take stock of the state of the financial system and discuss measures to avoid potential risks.
The sub committee discussed proposals in respect of banks selling products of more than one insurance company under the bancassurance model.
It also resolved to set up a forum for inter agency coordination and exchange of information about collective investment schemes and discussed the need for a nationwide awareness campaign in this respect.
The sub committee discussed the potential impact on India of the extra-territorial aspects of regulations by European Securities and Markets Authority (ESMA) and US Commodity Futures Trading Commission (CFTC) and resolved to chalk out a unified strategy for the same.
It also reviewed the functioning of the technical groups set up for focused attention on different areas/segments on financial inclusion, financial literacy and the inter-regulatory coordination.
The sub committee reviewed the potential risks to stability of the domestic financial system and expressed concern over the deteriorating asset quality of public sector banks and discussed corrective measures in this regard.
RBI governor D Subbarao chaired the meeting, which was attended by secretary of the department of economic affairs Arvind Mayaram, department of financial services secretary Rajiv Takru, incoming RBI governor and current chief economic adviser Raghuram G Rajan, Securities and Exchange Board of India chairman U K Sinha, Pension Fund Regulatory and Development Authority chairman Yogesh Agarwal, Insurance Regulatory and Development Authority chairman T S Vijayan and RBI deputy governors KC Chakrabarty, Anand Sinha, H R Khan and Urjit R Patel, RBI executive director G Gopalakrishna and other senior officials.
The meeting of the sub committee comprising officials of the RBI and the finance ministry also reviewed the situation arising out of the weakening rupee and the widening current account deficit (CAD).