FSDC stresses on vigilance, reforms amid global uncertainty & AI boom

New Delhi: Finance minister Nirmala Sitharaman on Friday chaired the Financial Stability and Development Council (FSDC) meeting, which took cognisance of the emerging trends in the domestic and global macro-financial situation and stressed the need to be vigilant.The committee reviewed macro-financial stability amid increasing geopolitical uncertainties, the artificial intelligence boom (AI) and a sharp rise in global bond yields.In a statement, the finance ministry said the FSDC deliberated on strengthening the domestic investment ecosystem, enhancing capital flows and deepening financial sector reforms.Live EventsET BureauSitharaman also urged the council to hold FSDC meetings more frequently given rising geopolitical headwinds and global uncertainties, the ministry said.The meeting was also attended by Reserve Bank of India governor Sanjay Malhotra, Securities and Exchange Board of India chairman Tuhin Pandey, insurance regulator Ajay Seth and other senior officials.The council also reviewed the cyber resilience of the Indian financial sector and took note of the Financial Sector Cyber Security Strategy (FSCSS) formulated by an inter-ministerial group comprising financial sector regulators and cybersecurity agencies.In its statement, the finance ministry stated that considering the importance of regulatory improvisation and digital modernisation in the financial sector, the FSDC also discussed measures towards promoting innovation in the fintech sector and exploring the prospects of tokenisation of financial assets and other real-world assets.The FSDC additionally discussed issues relating to formulating a strategy for implementing past decisions and budget announcements, including strengthening the domestic investment ecosystem and improving resource flow for investment, including in the GIFT-IFSC.Other issues deliberated included the simplification and digitalisation of know your customer (KYC) processes, alongside digital onboarding for non-resident Indians and foreign portfolio investors.(You can now subscribe to our Economic Times WhatsApp channel)