Financial Data Management Bill,2016

Why in news?

A committee set up under the Department of Economic Affairs has recommended the creation of a statutory body that will standardise data from all financial sector regulators in a single database and will provide analytical insights based on the data.

Financial Data Management Bill,2016

• The report of the committee to study the financial data management legal framework in India, suggests the passage of a Bill in Parliament—the Financial Data Management Centre Bill 2016.
• The bill proposes to create a statutory body.
• Subject to the provisions of this Act, or any other law for the time being in force, it shall be the duty of the Data Centre to take measures to standardise data from regulators in consultation with the regulators.
• It will enable financial service providers to submit data in a standardised electronic format, analyse the data and maintain a financial system database.

What are the powers of Financial Data Management Centre?

• The powers of the Financial Data Management Centre (FDMC) will include the establishment, operation and maintenance of the financial system database along with collecting financial regulatory data and providing access to it.
• The body will also provide analytical support to the Financial Stability and Development Council (FSDC) on issues relating to financial stability.
• In 2015, when the FSDC first suggested the creation of such a body, the Reserve Bank had objected to sharing company-specific data with the body as it was not statutory in nature, and sharing such data would be a breach of confidentiality.

Category: Mains| GS – II| Government Intervention

Source: The Hindu