The Reserve Bank of India (RBI) has officially recognised the Finance Industry Development Council (FIDC) as a Self-Regulatory Organisation (SRO) for Non-Banking Financial Companies (NBFCs).
In June 2024, the central bank had invited applications for recognition of SROs for the NBFC sector through a public press release. Following this, the RBI received three applications or letters of interest from various entities.
The applications were evaluated based on the criteria set out in the ‘Omnibus Framework for Recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank’ issued on March 21, 2024, and the guidelines specified in the recent press release.
After a detailed examination, the RBI decided to recognise FIDC as the official SRO for NBFCs.
Self-regulatory organisations (SROs) are expected to help develop industry standards and best practices and ensure that members adhere to these.
They are also expected to ally with the RBI to ensure better compliance with regulatory guidelines and for the detection of early warning signals, among other things.
The FIDC is a representative body of non-banking financial companies (NBFC) registered with the RBI. Almost all the leading NBFCs across the country are members of this organisation, according to its website.
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