The Reserve Bank of India (RBI) has officially recognised the Finance Industry Development Council (FIDC) as the Self-Regulatory Organisation (SRO) for the non-banking financial company (NBFC) sector, marking a landmark moment in India’s financial regulation landscape. This recognition falls under the RBI’s Omnibus Framework for SROs, issued in March 2024, to strengthen sectoral governance and compliance. Out of three applications received for SRO status in the NBFC space, FIDC’s submission was the only complete and successful one, underscoring its preparedness and credibility to serve as the industry’s unified voice.
As an RBI-approved SRO, FIDC will play a crucial role in fostering discipline, transparency, and integrity across NBFCs, setting sector-wide codes of conduct and ethical standards. Its responsibilities include proactively monitoring adherence to regulatory guidelines, resolving disputes, and maintaining close coordination with the RBI to address emerging challenges. With a membership base of nearly 400 NBFCs spanning investment and credit companies (NBFC-ICCs), housing finance companies, NBFC-factors, and infrastructure financing entities, FIDC is positioned to represent a broad spectrum of the sector’s interests while driving sound governance practices.
This recognition also entrusts FIDC with significant authority to act as an extended regulatory arm, educating members, encouraging voluntary compliance, and supporting resilience and sustainable growth. The RBI requires FIDC to secure at least 10 percent sector membership within two years following recognition, and failure to meet obligations could result in revocation of the SRO status.
Raman Aggarwal, CEO of FIDC, called this a “red-letter day,” highlighting the organisation’s commitment to strengthening the NBFC ecosystem. Industry observers view this development as an affirmation of the NBFC sector’s crucial role in promoting financial inclusion and supporting India’s broader economic growth agenda. Joining SROs in the microfinance (Sa-Dhan, MFIN) and fintech (FACE) sectors, FIDC’s recognition signifies a formal step towards enhanced self-regulation, collaboration, and better oversight, benefiting stakeholders and customers across India’s growing NBFC landscape.
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This milestone aligns with the vision of building a Viksit Bharat through robust, transparent financial systems and innovation-driven development.
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