Ajay Seth was speaking with reporters after the meeting of FSDC, which is chaired by the finance minister and brings together the leading regulators, including the country's central bank.
"We see that the global financial situation is daunting but, at the same time, Indian economy and financial sector is well protected and well regulated. But of course we have to be cautious and be on our toes," Seth said.
Asked whether the council, which was the first FSDC meeting since the 2023/24 Federal Budget was announced on Feb. 1, discussed India's exposure to the Western financial system, he said it was not specifically discussed. However, whether spillover can occur and the channels of potential risks were debated.
(Reporting by Shivangi Acharya and Aftab Ahmed, writing by Sakshi Dayal; Editing by Toby Chopra and Barbara Lewis)
