They also discussed fundraising by social enterprises through social stock exchanges, and issues related to macro financial stability and how prepared India is to deal with them, the ministry added. A social stock exchange is an add-on to an existing stock exchange that’s designed for non-profit organisations and social enterprises looking to raise funds.

Illegal loan apps, which have mushroomed on the back of rapid growth in digital lending, have duped many Indian citizens. These apps don’t follow the RBI’s regulations. Google removed nearly 2,200 such apps from the Play Store between September 2022 and August 2023, according to a recent statement from Bhagwat Karad, minister of state in the ministry of finance in the Rajya Sabha.

At the meeting, officials also underscored the need for constant vigil and proactive efforts to detect emerging financial stability, the ministry said. The council also focused on strengthening inter-regulatory coordination in the financial sector to support inclusive economic growth, it added.

India, which is expected to clock 7% GDP growth in FY24, remains the world’s fastest-growing major economy. However, a slew of external factors such as a slowdown in advanced economies, geopolitical conflicts in Ukraine and the Middle East, and the resulting rise in commodity prices, have threatened to derail growth.

Set up as an apex forum in 2010, the FSDC aims to maintain financial stability, enhance inter-regulatory coordination and promote financial-sector development. It is chaired by the finance minister, and other members include the chief economic adviser, the finance secretary, heads of financial-sector regulators such as the RBI, the Securities and Exchange Board of India (Sebi), the Pension Fund Regulatory and Development Authority (PFRDA), and the Insurance Regulatory and Development Authority (IRDA), apart from secretaries of key departments of the finance ministry such as the department of economic affairs and the department of financial services.

On Wednesday the council meeting also discussed ways to boost the International Financial Services Centre (IFSC) at Gift City. “Ongoing inter-regulatory issues were also discussed to support the Gift IFSC in its strategic role to become one of the world’s premier international financial centres and perform its envisioned role of facilitating foreign capital and financial services for the domestic economy,” the ministry added.

It also discussed various issues related to formulating a strategy to implement announcements in the union budget. These include prescribing uniform KYC (know your customer) norms, inter-usability of KYC records across the financial sector, and simplifying and digitising the KYC process, the ministry said.

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Published: 21 Feb 2024, 07:07 PM IST