In view of emerging importance of the financial sector in the post-liberalisation era of the Indian economy, the Finance Ministry has decided to have a full fledged department to deal with issues relating to banking and insurance.
“The Financial Sector Division, currently working as a Division under the Department of Economic Affairs, will now become a full fledged Department under the Finance Ministry,” according to official sources in the Finance Ministry.
“The proposal has been cleared and a notification will be issued by the Cabinet Secretariat soon,” sources said.  The Secretary of the Financial Sector Division, which exclusively deals with matters relating to banking and insurance, will now directly report to the Finance Minister. By upgrading the Financial Sector Division into a Department will cut down procedural delay thereby accelerating decision making process on matters relating to banking and insurance, sources said.  With setting up of Department of Financial Sector the Finance Ministry will now have five full fledged departments.  The other four departments are: Department of Economic Affairs, Department of Revenue, Department of Expenditure and Department of Disinvestment.