The Finance Ministry on Monday decided to set up a Crisis Management Group (CMG) to deal with the impact of the global problems on the domestic economy, especially on the financial sector. The decision to set up a CMG was taken at a meeting headed by R Gopalan, Secretary Department of Economic Affairs (DEA) in the Finance Ministry. According to official sources, the group will work towards developing an early warning mechanism to avert a crisis and it will also include experts. The meeting was attended by Chief Economic Advisor Kaushik Basu, Financial Services Secretary D K Mittal and Disinvestment Secretary Mohammad Haleem Khan among others.

The idea to set up a small group comprising representatives of different regulators to deal with the crisis was mooted by the Reserve Bank of India.