In order to have a formalised coordination mechanism, a Financial Stability and Development Council (FSDC) under the Chairmanship of the Finance Minister has been constituted. A sub-committee of FSDC under the chairmanship of the Governor, Reserve Bank of India ensures coordination amongst the regulators during normal times.
Setting up of holding companies At present, most of the financial groups in India are led by banks and organised under the Bank Subsidiary model. This model, however, puts the onus on the parent bank for corporate governance, performance and capital requirement of the subsidiaries. Besides, the parent carries very substantial reputational risk.