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Finance Minister Nirmala Sitharaman will review the economic situation amid global and domestic problems at the Financial Stability and Development Council (FSDC) meeting on May 8.

The 27th high-level panel to be held here will be attended by all financial sector regulators, including RBI Governor Shakikanta Das, sources said.

This is the first meeting of the FSDC after passing the budget of `45 lakh crore for 2023-24, with a major focus on capital expenditure of `10,00,961 crore.

FSDC is an apex body of sectoral regulators headed by the Union Finance Minister.

The meeting will review the current global and domestic economic situation and financial stability issues, including banking and NBFC issues, taking into account the collapse of Silicon Valley Bank and Signature Bank and the liquidity pressure faced by Credit Suisse, he said.

He said that the council will evaluate the process of approved measures to ensure macroeconomic stability for the further development of the financial sector and comprehensive economic growth.

The RBI in its latest two-month policy update marginally raised its financial growth forecast for the current period to 6.5%, up from the previous estimate of 6.4%.

The RBI Governor, who announced the first monthly monetary policy for 2023-24 in April, said GDP growth is expected to be 7.8% in the first quarter of 2023-24.

Growth in the second, third and fourth quarters is forecast to be 6.2%, 6.1% and 5.9% respectively.

The last meeting of the High Level Panel was held in September 2022.

In its last meeting, the Council discussed early warning indicators of the economy and its preparedness to deal with them, the effectiveness of existing financial/credit information systems and the governance and management of systemically important financial institutions, including financial market infrastructure. Strengthening the cyber security framework in the financial sector.

Also common KYC for all financial services and related issues, update on bill collector and next steps, issues related to power sector finance, strategic role of GIF IFSC in New Atmanirbahar Bharat, GIFT-IFSC inter-regulatory issues and interest in service of registered valuers in all government departments Usage was also discussed.

The FSDC meeting reviews the performance of the FSDC Sub-Committee chaired by the RBI Governor and the final decisions of the FSDC taken by the members.

Besides the RBI Governor, Securities and Exchange Board of India Chairman Madhabi Puri Buch, Insurance Regulatory and Development Authority of India (IRDAI) Chairman Debasish Panda, Insolvency and Bankruptcy Board of India Chairman Ravi Mittal and Pension Fund Regulatory and Development Authority newly appointed Chairman Deepak Mohanty will be present in the meeting.

Sources said that the FSDC meeting will be attended by Minister of State for Finance Bhagat Kishanrao Kharad, Finance Secretary TV Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Sanjay Malhotra, Financial Services Secretary Vivek Joshi and other senior officials of the Finance Ministry.

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