FSDC sub-committee suggests deepening of financial inclusion

A sub-committee of the Financial Stability Development Council (FSDC) has suggested further deepening of the financial inclusion plan while also strengthening the regulatory framework for the financial sector.

The sub-committee, which met in Hyderabad today, also
decided to form a working group to examine issues involved in framing a proposal for a comprehensive resolution regime in the country for all types of financial institutions.

The meeting, chaired by Reserve Bank of India governor Dr D Subbarao, reviewed the recent developments in the global economy, specifically in the euro zone and the US and the consequences for India.

The meeting was convened amidst concerns on slowing growth, persistent inflationary pressures, growing twin deficits and negative market perceptions.

The meeting is believed to have specifically discussed the rising quantum of gold imports and its contribution to the country's current account deficit.

The sub-committee decided to set up a working group to examine issues involved in framing a proposal for a comprehensive resolution regime in the country for all types of financial institutions, in compliance with the Financial Stability Board's (FSB) key attributes of effective resolution regimes for financial institutions.