The Reserve Bank of India (RBI) on March 21, 2024, issued the notification regarding the Omnibus Framework for recognising Self-Regulatory Organisations (SROs) for Regulated Entities (REs) of the Reserve Bank of India.
The following has been stated namely: -
• The omnibus framework is issued for recognizing SROs for the REs of the Reserve Bank.
• The framework also lays down the broad membership criteria and other terms and conditions to be followed by the SROs for the grant of recognition by the Reserve Bank.
• It may be noted that guidelines contained in the framework are the minimum requirement and the recognised SROs will be encouraged to develop their best practices.
• Objectives to be achieved: -
o Promote a culture of compliance among its members by encouraging progressive practices and conventions.
o Act as the collective voice of its members in engagements with the Reserve Bank, government authorities or other regulatory and statutory bodies, in India.
o Collect and share relevant sectoral information to the Reserve Bank to aid in policymaking.
o Encourage a culture of research and development within the sector to encourage innovation while ensuring the highest standards of compliance and self-governance.
• Eligibility criteria for the applicant: -
o The applicant shall be set up as a not-for-profit company registered under Section 8 of the Companies Act, 2013. The applicant must have adequate net-worth as specified, wherever necessary.
o The applicant must represent the sector and have the specified membership or should have submitted a roadmap for attaining specified membership within a reasonable timeline.
o Neither the applicant nor any of its directors should be involved in any legal proceeding, which may have an adverse impact on the interest of the sector.
