Financial sector regulators need to maintain an optimal balance between the stability and innovation to foster financial inclusion, said Economic Survey 2024-25 tabled in Parliament on Friday. The financial sector is primarily governed through independent regulatory bodies (IRBs) RBI, SEBI, IRDAI, PFRDA and IBBI -- with FSDC having a broader financial stability mandate, enabling inter-regulatory coordination and promoting financial sector development, the survey said. Each IRB varies in design, the nature of delegated functions, and the degree of autonomy, which are unique to the socio-political context of its evolution and the regulated domain, it said. "Regulation in the financial sector must strike an optimal balance between the imperative of stability and the goals of fostering innovation, efficiency, and competition. Given the country's low financial literacy and lower-middle-income status, ensuring stability is essential to prevent systemic risks and protect consumers," it ..