Financial Sector Reforms and Legislation Division | Department of Economic Affairs

Introduction

FSRL Division is engaged in identifying and implementing legislative and systemic financial sector reforms and initiatives that will ensure systemic stability and overall resilience of the financial sector in the country.

FSRL Division comprises two sections :

Financial Sector Reforms Section : It deals with issues related to implementation of the Monetary Policy Framework envisaged under the Reserve Bank of India Act, 1934 and matters related to the High-Level Committee on Deployment of the Foreign Exchange Reserves.
Legislative Reforms Section : It deals with implementation of reforms in the financial sector laws in alignment with the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) and other financial standard setting bodies.

Mandate of the Division

To initiate policy proposals and legislative proposals in tune with the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) and other financial standard setting bodies;
To engage concerned stakeholders, regulators, Ministries/Departments and the public in the consultative process during the preparation of legislative and policy proposals for the financial sector;
To monitor the implementation of non-legislative recommendations of FSLRC by financial sector regulators.
To constitute the Monetary Policy Committee (MPC) and appoint three external members of MPC once in every four years, as per section 45ZB of the Reserve Bank of India Act, 1934.
To determine the inflation target in terms of the Consumer Price Index, once in every five years, as per Section 45ZA of the Reserve Bank of India Act, 1934.
To handle the issues related to the High-Level Strategy Committee (HLSC) of the RBI on deployment of Foreign Exchange Reserves.
Matters related to the Bilateral Netting of Qualified Financial Contracts Act, 2020.