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RBI Elevates FIDC to Self-Regulator for Non-Bank Lending Sector

Written by: Team Angel OneUpdated on: 6 Oct 2025, 7:37 pm IST
RBI grants self-regulatory status to the Finance Industry Development Council (FIDC) to oversee compliance and standards in the non-bank lending sector.
RBI Elevates FIDC to Self-Regulator
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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.

Role of SROs

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.

Applications Considered

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.

Background

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.

About FIDC

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.

Read More: EPFO Cannot Deny Higher Pensions to Employees Who Retired After September 1, 2014: Kerala High Court!

Conclusion

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.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Oct 6, 2025, 1:39 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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