RBI finalises Omnibus Framework for SROs in regulated entities

The Reserve Bank of India (RBI) on Thursday said it had finalised the Omnibus Framework for recognising Self-Regulatory Organisations (SRO) for its Regulated Entities.

The Reserve Bank of India (RBI) on Thursday said it had finalised the Omnibus Framework for recognising Self-Regulatory Organisations (SRO) for its Regulated Entities.

Each sector of the regulated entities (RE) including fintechs will have separate SRO and with the finalisation of the framework the RBI will receive applications from various entities seeking to get SRO status.

With the growth of the REs in terms of number as well as scale of operations, increase in adoption of innovative technologies and enhanced customer outreach, a need was felt to develop better industry standards for self-regulation, the central bank said.

“The omnibus framework contains broad parameters viz., objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition, which will be common for any SRO proposed to be recognized by the Reserve Bank,” the RBI said in a circular.

Other sector-specific guidelines like number of SROs, membership etc. will be issued separately by the respective departments of the Reserve Bank wherever a sectoral SRO is intended to be set up.

As per the announcement made in the Statement on Developmental and Regulatory Policies of the Reserve Bank, as part of its Monetary Policy Statement – 2023-24 dated October 06, 2023, a draft framework titled ‘Draft Omnibus Framework for recognising Self-Regulatory Organisations for its Regulated Entities’ was issued for public comments on December 21, 2023.

Based on the examination of the inputs received, the Omnibus Framework has been finalised, the central bank said.