1. It is a joint program of the International Monetary Fund (IMF) and the World Bank (WB), started in 1999, which undertakes a comprehensive and in-depth analysis of a country’s financial sector. 2. As per the practice, as a concluding part of the FSAP, the IMF comes out with Financial System Stability Assessment (FSSA) report and the World Bank brings out the Financial Sector Assessment (FSA) report. 3. [About FSAP](https://www.imf.org/en/publications/fssa) 1. [FAQs](# Financial Sector Assessment Program: Frequently Asked Question) on FSAP 2. [The Financial Sector Assessment Program (FSAP) - A Factsheet](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/16/14/Financial-Sector-Assessment-Program) 3. [FSAPs and Systemically Important Financial Sectors (SIFS)](https://www.imf.org/external/np/fsap/mandatoryfsap.htm) 4. [FSAP Policy Papers](https://www.imf.org/en/Publications/SPROLLs/Financial-Sector-Assessment-Program-FSAP-Policy-Papers#sort=%40imfdate%20descending) 5. Purpose of FSAP - [Link](https://www.imf.org/en/about/factsheets/sheets/2023/financial-sector-assessment-program-fsap#:~:text=What%20is%20the%20purpose%20of%20FSAP%3F) 4. Now we discuss about the FSAP of India 5. FSAP 2000-01 1. India’s FSAP was initially completed by the IMF/World Bank in 2000-01 but it was not made public, as it was part of the pilot FSAP assessment of 12 countries 2. [Sept 29, 2005](https://www.imf.org/external/pubs/ft/fsa/eng/index.htm) - Following the initiation of this program in 1999 by the World Bank and the International Monetary Fund in the aftermath of the Asian financial crisis, and their experience in the conduct of assessment in member countries, the two institutions have jointly brought out in September 2005, a comprehensive _Handbook on Financial Sector Assessment_ 5. 2010 - Since September 2010 the exercise has become mandatory for jurisdictions (IMF member countries) with systemically important financial sectors, including India 6. FSAP 2011 1. May 2010, India requested the IMF/World Bank to conduct a full-fledged FSAP. Accordingly, India’s FSAP was conducted during 2011. The IMF/World Bank scoping mission visited the Ministry of Finance on 1 February 2011 to conduct an FSAP Update. The FSAP’s two missions visited India from 14-27 June 2011 and from 3-18 October 2011. 2. [January 15, 2013](IMF_201301_FSSA%202011.pdf) - FSSA (2011) was released by IMF 3. [Jan 16, 2013](RBI_Press%20Release_20130116_India-%20Financial%20System%20Stability%20Assessment.pdf) - Press Release by RBI-India: Financial System Stability Assessment 7. August 2013 - [Box VI.1-India: Financial Sector Stability Assessment](RBI_Annual%20Report_2013.pdf#page=114&selection=120,0,121,44)) in RBI's Annual Report 2013 8. 2017 - The FSSA report was published by IMF in December 2017 and the FSA report was published by World Bank in December, 2017 1. [December 2017](IMF_201712_Financial%20System%20Stability%20Assessment%20(FSSA)%202017.pdf) - FSSA) 2017 was published by IMF 2. [October 2017](World%20Bank_201710_Financial%20Sector%20Assessment%20(FSA)%202017.pdf) - (FSA) 2017 was published by World Bank 3. [Dec 21, 2017](PIB_20171221_IMF%20and%20WB%20release%20the%20Financial%20System%20Stability%20Assessment%20(FSSA)%20and%20Financial%20Sector%20Assessment%20(FSA)%20respectively%20on%20their%20websites.pdf) - Press Release by Ministry of Finance 9. Aug 2018 - [Box X.3-India - Financial Sector Assessment Programme (FSAP), 2017](RBI_Annual%20Report_2018.pdf#page=191&selection=5,0,5,58) in Annual Report 2018 10. [2021 FSAPs review](https://www.imf.org/en/publications/policy-papers/issues/2021/06/01/2021-financial-sector-assessment-program-review-background-paper-on-scope-460585): 1. The list of countries mandated to undergo FSAP assessments rose to 47. Of these, 32 countries (including India) and the euro area are expected to participate once every five years, while the other 15–many of them emerging market economies–participate every 10 years. 2. It also emphasized the importance of further integrating FSAPs with Article IV consultations and the Comprehensive Surveillance Review. In 2021, the International Monetary Fund (IMF) had also completed its first comprehensive review ([CSR](https://www.imf.org/en/Topics/Comprehensive-Surveillance-Review))of its surveillance since the 2014 Triennial Surveillance Review(TSR). 11. FSAP 2024 1. An IMF and a World Bank team visited India during March and June 2024 to conduct an assessment under the Financial Sector Assessment Program (FSAP) 2. Based on the assessment carried out during 2024, the World Bank has released the India-FSA report on their website on October 30, 2025. IMF had already released the India-FSSA report on their website on February 28, 2025. 1. [Feb 28, 2025](IMF_20250228_FSSA%202024.pdf) - FSSA (2024) was released by IMF 2. [Mar 24, 2025](RBI_Press%20Release_20250324_India-%20Financial%20Sector%20Assessment%20Program,%202024.pdf) - Press Release by RBI - India: Financial Sector Assessment Program, 2024 3. October 30, 2025 - [FSA (2024)](World%20Bank_20251030_Financial%20Sector%20Assessment%20(FSA)%202024.pdf) by World Bank - [Link](https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099103025110514063) 4. [Nov 07, 2025](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=61579) - Press release by RBI - India: Financial Sector Assessment Program, 2024 5. [Jan 2026](GoI_Press%20Release_202601_India%20Financial%20Sector%20Assessment%20Program_FSAP%202024.pdf) - Press Release by Department of Economic Affairs, Ministry of Finance (MoF), Government of India ## Committee on Financial Sector Assessment (CFSA) 1. [Sept 14, 2006](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=15388) -  RBI announced the set up of 'Committee on Financial Sector Assessment' (CFSA), decided by the Government of India in consultation with the Reserve Bank, with the following terms of reference: 1. To identify the appropriate areas, techniques and methodologies in the Handbook and also in any other pertinent documents for financial sector assessment relevant in the current and evolving context of the Indian financial sector; 2. To apply relevant methodologies and techniques adapted to Indian system and attempt a comprehensive and objective assessment of Indian financial sector, including its development, efficiency, competitiveness and prudential aspects; 3. To analyse specific development and stability issues as relevant to India; and 4. To make available its report(s) through Reserve Bank of India/Government of India websites. 2. To ensure an impartial assessment, the CFSA constituted four external independent Advisory Panels, comprising non-official experts drawn from within the country. These Panels made their assessments after thorough debate and rigorous scrutiny of inputs provided by the Technical Groups. 3. The Advisory Panels were: 1. The Panel on Financial Stability Assessment and Stress Testing –covered macro- prudential analysis and stress testing of the financial sector; 2. The Panel on Financial Regulation and Supervision – covered banking regulation and supervision, securities market regulation and insurance regulation standards; 3. The Panel on Institutions and Market Structure – covered standards regarding bankruptcy laws, corporate governance, accounting and auditing, and payment and settlement systems; and 4. The Panel on Transparency Standards – covered standards pertaining to monetary and financial policies, fiscal transparency and data dissemination issues. 4. The CFSA was chaired by Dr. Rakesh Mohan, Deputy Governor, Reserve Bank of India. 5. The Co-Chairmen at different points in time were Shri Ashok Jha, Dr. D. Subbarao and Shri Ashok Chawla, Secretary, Economic Affairs, Government of India. The Committee also had other officials from the Government of India as its members. 6. [March 25, 2009](RBI_Press%20Release_20090325_The%20Committee%20on%20Financial%20Sector%20Assessment%20Submits%20its%20Report%20to%20the%20Finance%20Minister.pdf) 1. India’s FSAP was initially completed by the IMF/World Bank in 2000-01 but it was not made public, as it was part of the pilot FSAP assessment of 12 countries 2. The Committee completed a self-assessment in 2009. So this is India's self assessment of financial sector stability and development, which is different from the Financial Sector Assessment Program (FSAP), a joint program of the International Monetary Fund (IMF) and the World Bank (WB) 3. The committee submitted its first report (is in 6 volumes, distributed by Foundation Books, [Volume I-Executive Summary](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_RBI%20Bulletin-May%202009.pdf)) of the Committee on Financial Sector Assessment. 4. The assessments and recommendations comprise six volumes. These six volumes should be viewed as a package complementing one another. These 6 volumes are: 1. [Executive Summary-Volume I](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20I-Executive%20Summary.pdf), 2. Overview Report - [Volume II](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20II-Overview%20Report.pdf) | [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=544) 3. and the reports of the four Advisory Panels mentioned above. 1. Advisory Panel on Financial Stability Assessment and Stress Testing - [Volume III](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20III-Advisory%20Panel%20on%20Financial%20Stability%20Assessment%20and%20Stress%20Testing.pdf) | [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=545) 2. Advisory Panel on Financial Regulation and Supervision - [Volume IV](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20IV-Advisory%20Panel%20on%20Financial%20Regulation%20and%20Supervision.pdf) 3. Advisory Panel on Institutions and Market Structure - [Volume V](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20V-Advisory%20Panel%20on%20Institutions%20and%20Market%20Structure.pdf) 4. Advisory Panel on Transparency Standards - [Volume VI](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_Volume%20VI-Advisory%20Panel%20on%20Transparency%20Standards.pdf) 7. [Box VI.2 Major Recommendations of the Committee on Financial Sector Assessment (CFSA)](RBI_Annual%20Report_2009.pdf#page=271&selection=66,0,67,76) in RBI's Annual Report-2009 8. Related Note - [Financial Stability Department](Financial%20Stability%20Department.md) 9. IMF FSAP Reports of [India](https://www.imf.org/en/countries/ind) - Select "FSAP" in "See All Documents" ## Other reports by IMF ### IMF - Article IV consultations 1. Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. They are like  annual, legally mandated health checks of a member country's economy. 2. It covers fiscal, monetary, exchange rate and financial issues, which are at the heart of the Fund’s work 3. After the mission, several documents are released, major one being [Article IV Staff Reports](https://www.imf.org/en/countries/ind?selectedfilters=Article%20IV%20Staff%20Reports#whatsnew) ### Staff Country Reports 1. They include Article IV Consultation – Staff Reports, and other reviews/consultations/requests/assessments/technical notes/papers ## Related Notes 1. [Department of Supervision](Department%20of%20Supervision.md) 2. [Department of Regulation (DoR)](Department%20of%20Regulation%20(DoR).md) 3. [Financial Sector Assessment Program (FSAP)](Financial%20Sector%20Assessment%20Program%20(FSAP).md) 4. [Financial Stability Department](Financial%20Stability%20Department.md) ## References ### Press Releases & Notifications 1. RBI. (March 30, 2009). Report (is in 6 volumes, distributed by Foundation Books) of the Committee on Financial Sector Assessment. 1. [Volume I-Executive Summary](RBI_Reports_20090330_Report%20of%20the%20Committee%20on%20Financial%20Sector%20Assessment_RBI%20Bulletin-May%202009.pdf) | [Press Release](RBI_Press%20Release_20090325_The%20Committee%20on%20Financial%20Sector%20Assessment%20Submits%20its%20Report%20to%20the%20Finance%20Minister.pdf) 2. RBI. (Mar 24, 2025). RBI - India: Financial Sector Assessment Program, 2024. Press Release. [Link](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=61579) | [pdf](RBI_Press%20Release_20250324_India-%20Financial%20Sector%20Assessment%20Program,%202024.pdf) 3. RBI. (Nov 07, 2025). RBI - India: Financial Sector Assessment Program, 2024. Press Release. [Link](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=61579) 4. RBI. (Aug 24, 2010). Annual Report. [pdf](RBI_Annual%20Report_2010.pdf) ### Others 1. IMF 1. IMF. (September 29, 2005). Handbook on Financial Sector Assessment. [Link](https://www.imf.org/external/pubs/ft/fsa/eng/index.htm) 2. IMF. (Dec 2017). FSSA 2017. [pdf](IMF_201712_Financial%20System%20Stability%20Assessment%20(FSSA)%202017.pdf) 3. IMF. (Feb 28, 2025). FSSA (2024). [Link](https://www.imf.org/en/Publications/CR/Issues/2025/02/28/India-Financial-Sector-Assessment-Program-Financial-System-Stability-Assessment-562815) | [pdf](IMF_20250228_FSSA%202024.pdf) 2. World Bank 1. World Bank. (Oct 2017). (FSA) 2017. [(pdf](World%20Bank_201710_Financial%20Sector%20Assessment%20(FSA)%202017.pdf) 2. World Bank. (Oct 30, 2025). FSA (2024). [Link](https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099103025110514063) | [pdf](World%20Bank_20251030_Financial%20Sector%20Assessment%20(FSA)%202024.pdf) 3. Ministry of Finance. (March 16, 2012). Chap5-Financial Intermediation and Markets. Union Budget-2012-2013 [^1]: RBI. RBI's Functions and Working-2017. [pdf](RBI_RBSCC_201711_RBI's%20Functions%20and%20Working_2017.pdf#page=64&selection=8,70,9,78)