The agenda has been set more by immediate concerns, and there has been no explicit attempt to define what constitutes a “financial stability” issue that falls within the domain of the FSDC. Meanwhile, the Financial Sector Legislative Reforms Commission (FSLRC) submitted its report to the Government in March this year.
In its submission to the Commission during the consultative stage, the Reserve Bank argued that the financial stability mandate that the Reserve Bank has been carrying out historically by virtue of its broad mandate should be clearly defined and formalized. Nevertheless, the FSLRC has envisaged a different arrangement for safeguarding financial stability. Under this arrangement, the FSDC is accorded statutory status.