Government reconstitutes FSDC; includes secys from revenue, MeitY

The government has reconstituted the Financial Stability and Development Council (FSDC) to include secretaries from the revenue department as well as the Ministry of Electronics and Information Technology (MeitY). Inclusion of MeitY Secretary in the council becomes significant, given the offtake of digital transactions in the country, and the rising apprehensions around safety of personal data. The FSDC, chaired by the Union finance minister, was set up in 2010 by the then finance minister Pranab Mukherjee. The council comprises Reserve Bank of India governor, Securities and Exchange Board of India Chairman, finance secretary, and secretaries in the Departments of Economic Affairs, Financial Services and Corporate Affairs. The FSDC also has Chief Economic Advisor and chairpersons of insurance regulator Irdai, pension regulator PFRDA and Insolvency and Bankruptcy Board as members. The government, through a gazette notification, has now included Minister of State for Finance (who is incharge of the Department of Economic Affairs); secretary, Department of Revenue; and secretary, MeitY as members of the FSDC. The FSDC was set up to strengthen and institutionalise the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development. Since 2010, the FSDC has held 18 meetings, with the latest on December 29, 2017. The move to include revenue secretary in FSDC follows increasing safeguards being put in place by the department to check tax evasion in both direct and indirect taxes.