PIB Analysis for UPSC CSE
Topics Covered
- Financial Stability Development Council
- PM -Economic Advisory Council
1 . Financial Stability Development Council
Context : The 20th Meeting of the Financial Stability and Development Council (FSDC) was held here today under the Chairmanship of the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman.
About Financial Stability Development Council
- Indian Government has setup an apex-level Financial Stability and Development Council (FSDC) to strengthen and institutionalize the mechanism for maintaining financial stability and enhancing inter-regulatory coordination
- FSDC has replaced the High Level Coordination Committee on Financial Markets (HLCCFM), which was facilitating regulatory coordination, though informally, prior to the setting up of FSDC.
Composition
- The Council is chaired by the Union Finance Minister and its members are Governor, Reserve Bank of India; Finance Secretary and/or Secretary, Department of Economic Affairs; Secretary, Department of Financial Services; Chief Economic Adviser, Ministry of Finance; Chairman, Securities and Exchange Board of India; Chairman, Insurance Regulatory and Development Authority and Chairman, Pension Fund Regulatory and Development Authority.
Mandate
- The Council deals, inter-alia, with issues relating to financial stability, financial sector development, inter–regulatory coordination, financial literacy, financial inclusion and macro prudential supervision of the economy including the functioning of large financial conglomerates. No funds are separately allocated to the Council for undertaking its activities.
2 . PM -Economic Advisory Council
About EAC – PM
- Economic Advisory Council to the Prime Minister (PMEAC) is a non-constitutional, non-permanent and independent body constituted to give economic advice to the Government of India, specifically the Prime Minister.
- The council serves to highlight key economic issues facing the country to the government of India from a neutral viewpoint.
- It advises the Prime Minister on economic issues like inflation, microfinance, and industrial output
- Bibek Debroy is the current chairman of the current EAC
Functions
- Analyzing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon;
- Addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister. This could be either be suo-moto or on a reference from the Prime Minister or anyone else;
- Submitting periodic reports to the Prime Minister on macroeconomic developments and issues with implications for economic policy;
- Attending to any other task as may be desired by the Prime Minister from time to time.