NEW DELHI:  In light of domestic and international challenges, Finance Minister Nirmala Sitharaman will assess the status of the economy at a Financial Stability and Development Council (FSDC) meeting on September 15. All financial sector regulators, including RBI Governor Shaktikanta Das, will attend the high-level panel's 26th meeting, which will take held in Mumbai, sources said.

The Union Finance Minister serves as the head of the FSDC, which is the supreme body of sectoral regulators. According to the sources, the meeting would go through the current domestic and international financial stability challenges, especially those involving banking and NBFCs. They added that the council would also talk about the steps needed to advance the banking industry and create inclusive economic growth while maintaining macroeconomic stability.

The RBI predicts that the country's GDP will increase by 7.2% in the current fiscal year despite elevated retail inflation of 6.7%. The government and RBI are both working to reduce inflation, which has been running above the RBI's 6% tolerance level since January of this year. Additionally, the rupee's decline, which has it stuck at approximately 80 to the dollar, is pushing up inflation.

The rupee would be affected by the Fed chairman Jerome Powell's recent warning to prepare for additional significant interest rate hikes in the coming months to control inflation. 

The RBI Governor-chaired FSDC Sub-activities Committee's and the members' responses to prior FSDC decisions will also be reviewed at the meeting.  After the Budget 2022–23 was presented, the FSDC had its final meeting in February.

The meeting will also be attended by the chairman of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, the chairman of the Insurance Regulatory and Development Authority of India (IRDAI), Debasish Panda, the chairman of the Insolvency and Bankruptcy Board of India (IBBI), Ravi Mital, and the chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Supratim Bandyopadhyay.

According to the sources, a number of senior members of the Finance Ministry will also be present at the FSDC meeting, including Minister of State for Finance Bhagwat Kishanrao Karad, Finance Secretary T.V. Somanathan, Economic Affairs Secretary Ajay Seth, Revenue Secretary Tarun Bajaj, Financial Services Secretary Sanjay Malhotra, and others.

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