Financial Stability and Development Council Meeting Highlights

The 32nd meeting of the sub-committee of the Financial Stability and Development Council (FSDC) was chaired by the Reserve Bank of India (RBI) governor, Sanjay Malhotra, to discuss economic challenges due to US tariffs, KYC simplification, and measures for financial inclusion.

Key Discussions and Focus Areas

• Economic Challenges: The impact of tariffs imposed by the US and the necessary responses to these challenges.
• KYC Simplification: Efforts to simplify the Know Your Customer (KYC) process to enhance financial sector efficiency.
• Financial Inclusion: Measures to improve financial inclusion and review of the National Strategy for Financial Inclusion (NSFI) 2025-30.

Commitment to Financial Stability

• The subcommittee reaffirmed its dedication to strengthening financial sector resilience through coordinated regulatory efforts.
• Vigilance over emerging risks, especially those from heightened trade uncertainty and geopolitical frictions, was emphasized.

Review and Assessment

• Inter-regulatory Initiatives: Progress was reviewed, including those under the NSFI 2025-30.
• State-Level Coordination Committees (SLCCs): Functioning across states and union territories was assessed.