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Recognition of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs) (Updated on October 03, 2025)

Reserve Bank of India (RBI) has invited applications for recognition of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs).

What is the basis of Self-Regulatory Organisations (SROs) for Non-Banking Financial Companies (NBFCs)?

Reserve Bank of India (RBI) had issued ‘Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank’ dated March 21, 2024, wherein broad parameters, viz., objectives, responsibilities, eligibility criteria, governance standards, application process, etc., were specified. It was also stated that other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately whenever a sectoral SRO is intended to be set up.

RBI has now invited applications for recognition of SROs for the NBFC sector under the aegis of the aforesaid omnibus framework. 

What are the membership criteria for the SRO for NBFCs?

  • The SRO for NBFC sector is primarily envisaged for NBFCs in the categories of Investment and Credit Companies (NBFC-ICCs), Housing Finance Companies (HFCs) and Factors (NBFC-Factors). However, the SRO may also have other categories of NBFCs as its members.
  • The recognized SRO shall have a good mix of NBFC-ICCs, HFCs and NBFC-Factors as its members. 
  • To ensure fair representation to smaller NBFCs, the SRO shall have at least 10% of the total number of NBFCs in the Base Layer as per Scale Based Regulatory Framework and categorised as NBFC-ICC and NBFC-Factor, as its members. 
  • Failure to achieve the aforesaid membership, within 2 years of the grant of recognition as SRO, would render the SRO liable for revocation of the recognition granted.

What are other terms of recognition of SRO?

  • The applicant should achieve a minimum net worth of ₹2 crore within 1 year after recognition as an SRO by RBI, or before commencement of operations as an SRO, whichever is earlier. Thereafter, the SRO shall maintain this on an ongoing basis.
  • A maximum of 2 SROs for the NBFC sector will be recognised.
  • The guidelines as given in the omnibus framework for recognition of SRO for REs of RBI, shall be adhered to.
  • Different verticals / divisions within the SRO may be set up for catering to different categories of NBFCs, as considered necessary.

Which entity has been recognised as SRO for NBFCs?

(Updated on October 03, 2025)

Finance Industry Development Council (FIDC) has been recognised as an SRO for NBFCs.


References

Reserve Bank of India. (2024, June 19). 'Invitation of applications for recognition of Self-Regulatory Organisations (SROs) for NBFCs'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58123

Reserve Bank of India. (2024, March 21). 'Omnibus Framework for recognising Self-Regulatory Organisations (SROs) for Regulated Entities (REs) of the Reserve Bank of India'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12636&Mode=0

Reserve Bank of India. (2024, March 21). 'Omnibus Framework for recognition of Self-Regulatory Organisations for Regulated Entities of the Reserve Bank'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57534

Reserve Bank of India. (2025, October 03). 'Recognition of Self-Regulatory Organisation for NBFCs'. Retrieved from https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61353


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