RBI invites applications for recognising SROs for NBFCs under its framework
The Reserve Bank on Wednesday invited applications for recognition of Self-Regulatory Organisations (SROs) for the NBFC sector under the central bank's omnibus framework.
The applicant should achieve a minimum net worth of Rs 2 crore within a period of one year after recognition as an SRO, or before commencement of operations.
A maximum of two SROs for the NBFC sector will be recognised.
In March, RBI had issued the framework for recognising SROs for its regulated entities. SROs would be required to establish minimum benchmarks for their members. The framework specified broad parameters, like objectives, responsibilities, eligibility criteria, governance standards, and application process for SROs.
According to RBI, SROs enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies by providing inputs on technical and practical aspects.
"The SRO for NBFC sector is primarily envisaged for N