FSDC stresses on vigilance, reforms amid global uncertainty & AI boom

Benchmarks Nifty22,600.00-87.66FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.69 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.25 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper FSDC stresses on vigilance, reforms amid global uncertainty & AI boomBy ET BureauLast Updated: Oct 23, 2026, 11:23:00 PM ISTSynopsis

Finance minister Nirmala Sitharaman led an important session of the Financial Stability and Development Council, focusing on maintaining financial stability amidst looming geopolitical tensions and fluctuating global bond yields. Key topics included fostering a robust domestic investment climate, ensuring effective capital movement for reform, and addressing cybersecurity needs within the financial sector.

New Delhi: Finance minister Nirmala Sitharaman on Friday chaired the Financial Stability and Development Council (FSDC) meeting, which took cognisance of the emerging trends in the domestic and global macro-financial situation and stressed the need to be vigilant.

The committee reviewed macro-financial stability amid increasing geopolitical uncertainties, the artificial intelligence boom (AI) and a sharp rise in global bond yields.

In a statement, the finance ministry said the FSDC deliberated on strengthening the domestic investment ecosystem, enhancing capital flows and deepening financial sector reforms.

Also read | Strong macro fundamentals, policy interventions to anchor eco against global headwinds: RBI bulletin

"The Council recognised the need for proactive efforts to mitigate potential risks to financial stability while adopting adequate safeguards for the financial system's resilience," the statement noted, adding that the members decided to strengthen inter-regulatory coordination for the wider development of the financial sector.

Live Events

Sitharaman also urged the council to hold FSDC meetings more frequently given rising geopolitical headwinds and global uncertainties, the ministry said.

The meeting was also attended by Reserve Bank of India governor Sanjay Malhotra, Securities and Exchange Board of India chairman Tuhin Pandey, insurance regulator Ajay Seth and other senior officials.

The council also reviewed the cyber resilience of the Indian financial sector and took note of the Financial Sector Cyber Security Strategy (FSCSS) formulated by an inter-ministerial group comprising financial sector regulators and cybersecurity agencies.

Also read | PLFS set for fresh overhaul, govt seeks public & expert opinion on upcoming new things

"The implementation of the FSCSS is expected to strengthen the overall resilience of the Indian financial sector," the statement said, adding that the discussions also covered India's preparedness to protect the critical information infrastructure and resilience of protection systems and improving cybersecurity preparedness of regional rural banks.

In its statement, the finance ministry stated that considering the importance of regulatory improvisation and digital modernisation in the financial sector, the FSDC also discussed measures towards promoting innovation in the fintech sector and exploring the prospects of tokenisation of financial assets and other real-world assets.

The FSDC additionally discussed issues relating to formulating a strategy for implementing past decisions and budget announcements, including strengthening the domestic investment ecosystem and improving resource flow for investment, including in the GIFT-IFSC.

Other issues deliberated included the simplification and digitalisation of know your customer (KYC) processes, alongside digital onboarding for non-resident Indians and foreign portfolio investors.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onFinancial Stability and Development CouncilNirmala Sitharamanartificial intelligencefinancial sector reformsfsdc
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onFinancial Stability and Development CouncilNirmala Sitharamanartificial intelligencefinancial sector reformsfsdc Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition

• KYB and KYC: Business behind the wealth creator called “Divi’s Lab” – Part 1

• The global business of promising more

• One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?

• Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat

• War's second-order effects are becoming visible in critical sectors

• US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?

• 1
• 2
• 3

View all StoriesContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in