Sitharaman chairs 24th FSDC meeting, discusses Convertibility of Rupee

New Delhi, Sep 3 (UNI) Financial Stability and Development Council (FSDC) on Friday discussed internationalization of Indian rupee, issues related to non-performing assets (NPAs) and data sharing mechanism among others issues.
An international currency is one that is used and held beyond the borders of the issuing country such as US dollar and Euro. The “internationalization” of a currency indicates the concerned country’s external credibility in the world.
As per a NIPFP working paper published in 2018, the Indian Rupee currently accounts for approximately 1 per cent of global foreign exchange turnover. It has a smaller market size across most trading instruments when compared to the top 8 emerging market currencies.
Union Finance Minister Nirmala Sitharaman on Friday chaired the 24th meeting of FSDC and deliberated on the various mandates such as financial stability, financial sector development, inter-regulatory coordination, financial literacy, financial inclusion, and macro prudential supervision of the economy including the functioning of large financial conglomerates.
“The Council also, inter alia, discussed issues relating to management of stressed assets, strengthening institutional mechanism for financial stability analysis, financial inclusion, framework for resolution of financial institutions and issues related to IBC processes, banks’ exposure to various sectors and Government, data sharing mechanisms of government authorities, internationalisation of Indian Rupee and pension sector related issues,” a Finance Minister statement said after the meeting.
Among those who attended the meeting included RBI Governor Shaktikanta Das, Minister of State for Finance Bhagwat Kishanrao Karad, MoS (Finance), TV Somanathan, Finance Secretary and Secretary, Department of Expenditure, Ministry of Finance, Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance and Tarun Bajaj, Secretary, Department of Revenue.