Convenes Financial Stability Development Council meeting to review development in global economy
The Reserve Bank of India has taken necessary measures to check the fall in the rupee, according to the central bank's Deputy Governor K. C. Chakrabarty.
Mr. Chakrabarty said the apex bank had taken whatever measures were necessary and possible within its purview. “The RBI is doing whatever best that can be done. All are doing their jobs and the rupee is stable now,” he said.
Mr. Chakrabarty was addressing reporters on the sidelines of a meeting of the Financial Stability Development Council (FSDC), convened to review the development in global economy, with specific focus on the eurozone and the U.S., and their consequences for India.
The RBI Deputy Governor said, in reply to a query that the RBI had taken necessary measures to stabilise the currency.
RBI Governor D. Subbarao, IRDA Chairman J. Harinarayan, SEBI Chairman U. K. Sinha, PFRDA Chairman Yogesh Agrawal in addition to RBI deputy governors Subir Gokarn, Anand Sinha and executive director V. S. Das were among those attended the meeting.
A release issued later said the sub-panel discussed the concerns on slowing growth, persistent inflationary pressures, growing twin deficits and negative market perceptions. The meeting focussed on concerns arising from the quantum of gold imports and its contribution to the current account deficit.
The sub-committee decided to set up a working group to examine the scope for framing a proposal for a comprehensive resolution regime for all types of financial institutions in the country. The group, according to the release, had been mandated to study proposals for a resolution regime in compliance with the Financial Stability Board's key attributes of effective resolution regimes.
The extant gaps in regulatory framework for collective investment schemes and the need for the State governments to take the lead in plugging these gaps featured during the sub-committee's discussions. It was resolved to take the lead in setting up a regulatory framework for Investment Advisory Services forward.
The FSDC reviewed the functioning of the technical group for financial inclusion and literacy as well as the inter-regulatory technical group. The release said the panel stressed the need for measures to deepen financial inclusion further while it approved the National Strategy for Financial Literacy. “The document will be placed in public domain for wider consultation,” it added.