FDMC is proposed by Ajay Tyagi Committee which is being considered by Union Government.
What FDMC will do?
- Standardise data from all financial sector regulators in a single database and provide analytical insights based on the data to ensure stability in the economy.
- Take measures to standardise data from regulators, enable financial service providers to submit data in a standardised electronic format, analyse data and maintain a financial system database.
- Establish, operate and maintain the financial system database along with collecting financial regulatory data and providing access to it.
- Provide analytical support to the Financial Stability and Development Council (FSDC) on issues relating to financial stability.
Why FDMC is needed?
In 2015, FSDC first had suggested the creation of such a body, after Reserve Bank of India (RBI) had objected to share company-specific data with FSDC. RBI had given reason that FSDC is not a statutory body and sharing such data would be a breach of confidentiality. To resolve this issue, Union Finance Minister Arun Jaitley in his 2016-17 Budget Speech announced setting up of statutory FDMC under the aegis of the FSDC to facilitate integrated data aggregation and analysis in the financial sector.