The Sub-Committee of the Financial Stability and Development Council (FSDC-SC) on Thursday met for the first time since the outbreak of the West Asia war and deliberated on key global and domestic macroeconomic and financial sector developments, as well as emerging issues with implications for financial stability.
The meeting, which was chaired by RBI Governor Sanjay Malhotra, comes in the backdrop of WPI (wholesale price index)-based inflation surging to a 42-month high of 8.3% in April due to a sharp spike in fuel prices, the Rupee continuously depreciating, and concerns emerging on the growth front due to the West Asia war.
Government urges caution as economic pressures build
Prime Minister Narendra Modi, in a speech on May 10th, urged citizens to adopt austerity measures such as reducing fuel consumption, avoiding non-essential foreign travel, and postponing gold purchases to conserve foreign exchange amid the geopolitical and economic challenges arising from the war.
The FSDC-SE meeting also reviewed progress on several inter-regulatory matters, including the simplification of KYC processes and regulatory impact assessment, with an emphasis on enhancing the quality, transparency, and accountability of regulatory processes.
Key financial regulators and senior officials attend
The meeting was attended by the FSDC-SC members, representing regulatory bodies, such as Tuhin Kanta Pandey, Chairperson, Securities and Exchange Board of India; Ajay Seth, Chairperson, Insurance Regulatory and Development Authority of India; S Ramann, Chairperson, Pension Fund Regulatory and Development Authority, K. Rajaraman, Chairperson, International Financial Services Centres Authority.
Member-representatives from the Government, such as S Krishnan, Secretary, Ministry of Electronics and Information Technology; V Vualnam, Secretary, Department of Expenditure; and V Anantha Nageswaran, Chief Economic Adviser, among others.
RBI Deputy Governors Swaminathan J., Poonam Gupta, Shirish Chandra Murmu, Rohit Jain and Executive Director Ajit Ratnakar Joshi also attended the meeting.
Published on May 14, 2026