Current Affairs Date: 12 December 2023

⇒ The 3rd Finance Ministers and Central Bank Governors (FMCBGs) meeting under the Indian G20 Presidency took place in Gandhinagar, Gujarat from July 17 – 18, 2023.

• • The Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman and the Governor of the Reserve Bank of India (RBI), Dr. Shaktikanta Das, jointly chaired the meeting.

Participation:

The 3rd G20 FMCBG meeting saw the participation of Finance Ministers and Central Bank Governors of the G20 members, guest countries, and heads of International Organisations. In total, there were over 500 participants across 66 delegations who attended the meeting.

The 3rd meeting of the G20 FMCBGs marks the culmination of the work on many of the key deliverables from the G20 Finance Track in 2023 carried out under various work streams of the G20 Finance Track based on the mandate received during the 1st G20 FMCBG meeting held in February 2023 in Bengaluru.

3rd G20 Finance and Central Bank Deputies Meeting (FCBD):

The G20 FMCBG meeting was preceded by a meeting of G20 Finance and Central Bank Deputies (FCBD) from July 14 – 15, 2023.

• • The meeting was co-chaired by Secretary, Department of Economic Affairs, Ministry of Finance, Shri Ajay Seth and Deputy Governor, RBI, Dr. Michael D. Patra.
  • The focus of the Deputies’ meeting was to discuss the outcome document for the consideration of FMCBGs. This outcome document will present the work done under various work streams of the G20 Finance Track and the guidance from the FMCBGs on the way forward.

3rd G20 Finance Ministers and Central Bank Governors Meeting (FMCBG)

The 3rd G20 Finance Ministers and Central Bank Governors Meeting (FMCBG) was organized in five thematic sessions covering-

1. 1. Global Economy and Global Health
   2. Sustainable Finance and Infrastructure
   3. International Financial Architecture
   4. International Taxation
   5. Financial Sector & Financial Inclusion

Day 1:

The agenda of the first day included discussions on:

Global Economy and Global Health:

Delegates engaged in issues relating to the global economic outlook, economic risks & key policy responses to support recovery. Discussions focused on finalising deliverables under the G20 Framework for Growth & G20 Joint finance health agenda.

Sustainable Finance and Infrastructure:

The G20 Members endorsed the ‘G20 Report on Macroeconomic Risks Stemming from Climate Change and Transition Pathways’.

Policy Dialogues- A round table discussion on Crypto Assets:

Delegates exchanged views on policies that support regulatory actions, provide coherent guidelines and encourage beneficial growth leveraging Crypto Assets.

Day 2:

The discussions on the second day were on the following topics:

International Financial Architecture:

Delegates shared their views on the outcomes from the International Financial Architecture WG for 2023. Progress under the G20 Common Framework & timely resolution of debt treatment were also discussed. The G20 encouraged the efforts of the Global Sovereign Debt Roundtable (GSDR) towards strengthening communication among key stakeholders to facilitate effective debt treatment. The GSDR is chaired by India, IMF and the World Bank.

International Taxation:

Delegates exchanged views on the way forward on the outcome of the OECD/G20 Inclusive Framework Meet on BEPS. They also discussed strategies for capacity building to support the implementation of ‘Two Pillar Solution’ & enhancing global tax transparency.

Financial sector and Financial Inclusion:

Delegates discussed the progress in the Financial Sector and provided guidance on the Crypto Assets ecosystem. They also shared views on ways for advancing Financial Inclusion & Productivity Gains through digital approaches like Digital Payment Infrastructure (DPI) to achieve SDGs.

While noting that harnessing DPIs can help countries to leapfrog their development trajectories, the members unanimously endorsed the ‘G20 Policy Recommendations for Advancing Financial Inclusion and Productivity Gains through Digital Public Infrastructure’ developed under the Indian Presidency.

The G20 FMCBGs endorsed the new G20 2023 Financial Inclusion Action Plan (FIAP) for the three years 2024-26.

• • The FIAP provides an action-oriented and forward-looking roadmap for rapidly advancing the financial inclusion of individuals and MSMEs in G20 and beyond by focusing on action areas that inter alia focus on promoting technological, innovations and digital infrastructure.
  • India in its capacity as co-Chair of the Global Partnership for Financial Inclusion will lead the implementation of the new FIAP for the years 2024-2026.

Other major highlights:

1. 1. A G20 Infrastructure Investors’ Dialogue on ‘Leveraging Funding and Financing Mechanisms and Approaches for the Cities of Tomorrow’ was also held on July 16, 2023.
   2. A G20 High-Level Tax Symposium on Combatting Tax Evasion, Corruption, and Money Laundering was organised by the Indian Presidency on July 16, 2023, on the sidelines of the FMCBG meeting.
   3. RBI organised at the 3rd FCBD & FMCBG Meet, an exhibition that showcased innovations in ‘Frictionless Credit’ & ‘Central Bank Digital Currency’.
   4. To further enrich the ongoing policy work around crypto assets, a Round Table discussion titled “Policy Dialogues on Crypto Assets” was organized on the sidelines of the 3rd G20 FMCBG meeting at Gandhinagar.

The 3rd G20 FMCBG meeting concluded with a G20 Outcome Document and Chair’s Summary. It reflects the deliberations held during the meeting and conveys the wide support that the Indian G20 Presidency received for various deliverables envisaged for 2023.