On December 30, 2024, the Reserve Bank released the December 2024 issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability.
Highlights:
- The global economy and the financial system remain resilient. While near-term risks have receded, vulnerabilities such as stretched asset valuations, high public debt, prolonged geopolitical conflicts and risks from emerging technologies pose medium term risks to financial stability.
- The Indian economy and the domestic financial system are underpinned by strong macroeconomic fundamentals, healthy balance sheets of banks and non-banks.
- The soundness of scheduled commercial banks (SCBs) has been bolstered by strong profitability, declining non-performing assets and adequate capital and liquidity buffers. Return on assets (RoA) and return on equity (RoE) are at decadal highs while the gross non-performing asset (GNPA) ratio has fallen to a multi-year low.
- Macro stress tests demonstrate that most SCBs have adequate capital buffers relative to the regulatory minimum even under adverse stress scenarios. Stress tests also validate the resilience of mutual funds and clearing corporations.
- Non-banking financial companies (NBFCs) remain healthy with sizable capital buffers, robust interest margins and earnings and improving asset quality.
- The consolidated solvency ratio of the insurance sector also remains above the minimum threshold limit.
Food Authority Announces New Timeline for Labeling Regulation Compliance
The decision taken in 45th Food Authority Meeting held on 3rd January, 2025, regarding timeline for the compliance of amendments in labelling provisions. In exercise of the powers conferred by section 92 of the Food Safety and Standards Act, 2006, Food Safety and Standards Authority of India make or amend the Food Safety and Standards Regulations, with the approval of the Central Government. The following has been decided for the implementation of amendments in labelling provisions:
- The date of enforcement as July 1, subject to minimum of 180 days from the date of notification for the amendments related to FSS (Labelling and Display) Regulations and also for any change in labelling specified in other FSS Regulations.
- In case of emergency situations, the matter of implementation / enforcement may be decided on case to case basis.
MeitY releases Draft Digital Personal Data Protection Rules, 2025 for public consultation
The draft Rules details about the various implementation aspects such as the notice by the Data Fiduciary to the individuals, registration and obligations of Consent Manager, processing of personal data for issuance of subsidy, benefit, service etc. by State, applicability of reasonable security safeguards, intimation of personal data breach, providing details about availing of their rights by the individuals, processing of personal data of child or of person with disability, setting up the Data Protection Board, appointment and service conditions of the Chairperson and other members of the Board, functioning of Board as digital office, procedure to appeal to Appellate Tribunal among others.
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