The Sub-Committee of the Financial Stability and Development Council (FSDC) on Wednesday decided to set up a forum for inter-agency coordination and exchange of information about collective investment schemes (CIS) and discussed the need for a nationwide awareness campaign in this respect.

FSDC reviewed the potential risks to stability of the domestic financial system, including deteriorating asset quality of public sector banks.

“The Sub-Committee expressed concern on the deteriorating asset quality of public sector banks and discussed corrective measures in this regard,” said the Reserve Bank of India (RBI) in a release here.

The RBI Governor, D. Subbarao, chaired the meeting, which was also attended by Raghuram G. Rajan, Chief Economic Adviser, who will take over as RBI Governor next month.

Proposals in respect of banks selling insurance products for more than one insurance company under the bancassurance model were discussed, said the RBI.

The Sub-Committee also discussed the potential impact on India of the extra-territorial aspects of regulations by European Securities and Markets Authority (ESMA) and U.S. Commodity Futures Trading Commission (CFTC) and decided to chalk out a unified strategy for the same.

The Sub-Committee also reviewed the functioning of its technical groups set up for focussed attention on different areas/segments on financial Inclusion, financial literacy and the inter-regulatory coordination.

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