FM Sitharaman to Chair Key Financial Stability Council Meet in Mumbai on June 10 Amid Global Uncertainty

Mumbai | June 4 –  With capital market volatility and geopolitical risks rising, the 29th FSDC meeting will focus on safeguarding macroeconomic stability and aligning reforms with national financial goals.

Finance Minister Nirmala Sitharaman will preside over the 29th meeting of the Financial Stability and Development Council (FSDC) on June 10 in Mumbai, where the government and key regulators are expected to take stock of mounting global financial headwinds and their implications for India’s economic stability.

The meeting comes against the backdrop of persistent global volatility, ranging from shifting capital flows and inflationary pressures in advanced economies to heightened geopolitical tensions. Heads of major financial regulators — including the Reserve Bank of India (RBI), SEBI, IBBI, IRDAI, and PFRDA — will participate alongside senior officials from the finance ministry.

The council will assess systemic vulnerabilities, review financial sector reforms, and recalibrate regulatory priorities to align with the government’s broader policy objectives, government sources said.

Focus Areas: Stability, Inclusion, Market Deepening

High on the agenda will be a comprehensive review of financial stability risks — both external and domestic. The council is expected to discuss the resilience of India’s credit and capital markets, institutional preparedness to manage spillovers, and progress on key initiatives like financial inclusion and credit access for MSMEs.

Bond market development, deeper penetration of insurance and pensions, and digital finance oversight are also likely to feature in the discussion, government sources said.

Additionally, the FSDC will evaluate how well regulatory frameworks support the Centre’s priorities, including enhancing credit delivery to productive sectors, expanding financial literacy, and fostering innovation without compromising prudential norms.

Reviewing the Nerve Centre

The meeting will also include a review of the functioning of the FSDC Sub-Committee, which is chaired by the RBI Governor and meets more frequently to address ongoing developments in the financial ecosystem. This sub-committee plays a vital role in monitoring emerging risks and fostering inter-agency coordination across financial regulators.

The council may explore ways to strengthen this coordination mechanism further, especially in view of the growing complexity of India’s financial sector and the need for agile regulatory responses, government sources said.

Why It Matters Now

Established in 2010, the FSDC serves as the country’s apex coordination body for financial sector oversight. It is not a statutory regulator but acts as a crucial forum for high-level dialogue on economic stability, regulatory gaps, and strategic reform planning.

This 29th meeting assumes added importance as the government prepares its financial roadmap for the current fiscal and beyond. While India has remained relatively resilient amid global shocks, the FSDC’s deliberations are seen as instrumental in identifying emerging fault lines early and sharpening the country’s preparedness.

The forum also indirectly shapes investor sentiment and regulatory signalling, especially when concerns around liquidity, fiscal policy, and monetary coordination intersect.

Bottom Line:

As global risks become more entangled with domestic priorities, the upcoming FSDC meeting in Mumbai is expected to guide India’s financial sector strategy with a sharpened focus on macroeconomic stability, market resilience, and inclusive growth, government sources said.