RBI grants SRO status to Finance Industry Development Council (FIDC)

The Reserve Bank of India (RBI) on Friday granted self-regulatory organisation (SRO) status to the Finance Industry Development Council (FIDC).

 

According to the central bank, it had received three applications to be recognised as self-regulatory organisations in the NBFC space, including that of the FIDC.

 

“Based on the examination, it has been decided to recognise the Finance Industry Development Council (FIDC) as an SRO for NBFCs. The remaining two applications were not considered since they were incomplete as on the last date of submission of application,” the RBI said in its press release.

 

The microfinance companies have two SROs — Sa-Dhan and Microfinance Network (MFIN). Meanwhile, the Fintech Association for Consumer Empowerment (FACE) is the SRO for fintechs.

 

 

Raman Aggarwal, chief executive officer (CEO) of FIDC, said: “It is a red-letter day in the history of FIDC, now that we have formally received the RBI’s recognition to be the SRO for the NBFC sector. We had received the in-principle approval by April-end. There were certain formalities to be completed, which we did, and now the RBI has today given us the formal recognition. FIDC is a 21-year-old body and we have nearly 400 members. We strive and are working to expand our membership.”

 

“The real responsibility comes now as an SRO. We become the extended arm of the regulator to ensure compliance and discipline in the sector. We are working to make things operational in this direction. As an SRO, we shall represent NBFC-ICCs, NBFC factors, housing finance companies and infra-financing NBFCs,” Aggarwal added.