PSBs' performance, stalled projects are challenges for govt: FM Jaitley

Finance Minister Arun Jaitley said that the performance of Public Sector Banks, making stalled projects functional and increasing private sector investments are the major challenges before the government.

As per the release by Ministry of Finance, on Tuesday, Jaitley chaired 15th meeting of Financial Stability and Development Council (FSDC) in the presence of Reserve Bank of India Governor, Raghuram Rajan, SEBI chairman UK Sinha, Minister of State for Finance Jayant Sinha, Chief Economic Adviser (CEA) Arvind Subramanian, sand other senior financial sector regulators.

As per the release, the finance minister said that better monsoon and higher foodgrain/pulses output compared to previous years will substantially ease the prices.

The members of the meeting agreed on the need to be prepared for managing any external vulnerabilities, emerging from Brexit and its consequences.

"The Council noted that uncertainty in global economy and high volatility in the financial markets are prominent risks confronting the Emerging Market Economies (EMEs)", said the release. 

Further, a brief report on the activities undertaken by Raghuram Rajan was submitted to the FSDC.

The council discussed the measures taken by Government and RBI for handling NPAs issue in banks and the way forward to manage the situation. 

On the issue of maturity of concessional swaps of 2013 against FCNR (fixed deposits for NRIs) deposits during September-December 2016, FSDC noted the steps taken by RBI to suitably address the issue and its consequences.

Lastly, the council discussed the framework for identification od Systematic important financial insitutions across all sub-sectors of financial sector.