FM seeks views from sector regulators

The RBI policy is scheduled on January 25. As a standard practice,I have come to review the macroeconomic situation with the finance minister, Subbarao said after the meeting.

The Reserve Bank of India is widely expected to raise key interest rates by 25 to 50 basis points in its scheduled to hold the quarterly review of its monetary policy on January 25,as it tries to tame inflation that has shot up to 8.43 per cent in December,from 7.48 a month ago. Mukherjee,sources said,also sought inputs of the regulators on the budget with a view to improving and strengthening the financial sector and pushing the economy on the double-digit growth path.

Besides,Subbarao and officials of the finance ministry,the meeting was attended by Securities and Exchange Board of India SEBI chairman C B Bhave,Insurance Regulatory and Development Authority IRDA chief J Hari Narayan and Pension Fund Regulatory and Development Authority PFRDA chairman Yogesh Agarwal.

The proposal to set up FSDC to resolve the inter- regulatory issues was mooted by Mukherjee in his budget speech last year.

The high-level body is expected to deal with issues concerning financial stability,financial sector development,financial literacy,financial inclusion and macro-prudential supervision of the economy,including the functioning of large financial conglomerates.

Besides,the Council will also coordinate the country8217;s international interface with financial sector bodies such as the Financial Action Task Force FATF and Financial Stability Board FSB.