The Reserve Bank of India (RBI) has granted self-regulatory organisation (SRO) status to the Finance Industry Development Council (FIDC). This is aimed at strengthening compliance in the non-banking financial company (NBFC) sector. The announcement was made on Friday.
SROs are responsible for setting industry standards and ensuring members follow them. They are also expected to work closely with the RBI to improve adherence to regulations and to identify early warning signs in the sector. The role includes developing best practices and improving transparency.
The RBI said it had received three applications for SRO recognition in the NBFC sector. Out of these, only the FIDC was approved. The remaining 2 applications were not taken forward because they were incomplete at the time of submission. The RBI did not name the other applicants.
In 2023, the central bank introduced a framework for recognising SROs in financial markets. The framework was designed to allow industry bodies to assist the RBI in monitoring compliance. As part of this, the Fintech Association for Consumer Empowerment (FACE) was granted SRO status in the fintech sector last year.
The Finance Industry Development Council is a representative body of NBFCs registered with the RBI. According to its website, most of the leading NBFCs across the country are members of the organisation. By receiving SRO status, the FIDC will now have a formal role in ensuring its members comply with regulatory requirements.
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With the FIDC recognised as an SRO, the NBFC sector will now have an industry body officially responsible for supporting regulatory compliance and maintaining sector-wide standards. The step is expected to create a more structured system of oversight for non-bank lenders.
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Published on: Oct 6, 2025, 1:39 PM IST
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