FIDC Named Self-Regulatory Organisation for NBFCs by RBI
Why in the news
An NBFC industry body now has formal recognition as the sector’s SRO, to improve self-governance and coordination.
Key facts
- Recogniser: RBI; body: FIDC, established in 2004.
- It argues for fair practices, policy dialogue and professional standards.
- As SRO it will link RBI and NBFCs on policy and compliance.
| SRO | Sector |
|---|---|
| AMFI | Mutual funds |
| FIMMDA | Bond and derivatives markets |
| FIDC | NBFCs |
What is an SRO?
- An industry body recognised by a regulator like RBI or SEBI.
- It sets and enforces member conduct rules and helps supervision.
- It enables two-way communication with regulators.
Significance
- Promotes peer accountability: ethical lending, transparency, fair practices.
- Should aid grievance redressal and capacity building.
- FIDC will issue codes of conduct and best practices.
Context
- Fits RBI’s tiered Scale-Based Regulation (SBR) and risk-based supervision.
Exam angle
- SRO for NBFCs: FIDC.
- Year set up: 2004.
- Framework: Scale-Based Regulation.