FSDC calls for vigilance against financial risks from geopolitical uncertainty, AI boom

Union Finance Minister Nirmala Sitharaman has called for more frequent meetings of the Financial Stability and Development Council (FSDC) to address emerging risks to India's financial stability, including geopolitical uncertainties, the AI boom, and rising global bond yields. At its 30th meeting chaired by Sitharaman, the council emphasized the need for vigilance and proactive measures to mitigate potential risks while maintaining the financial system's resilience.

Key agenda items included promoting fintech innovation, exploring tokenization of assets, strengthening cyber resilience, and deepening financial sector reforms. The council also discussed cybersecurity, cybercrime preparedness, and protection systems, as well as implementing earlier decisions and budget announcements. Sitharaman urged regulators to expedite refunds of unclaimed financial assets and take additional measures to ensure timely returns to rightful owners.

The meeting brought together key financial sector regulators and government representatives from various ministries and regulatory bodies.