| Topic | Details |
|---|---|
| Event | Reserve Bank of India (RBI) grants Self-Regulatory Organisation (SRO) status to Finance Industry Development Council (FIDC). |
| Sector | Non-Banking Financial Companies (NBFCs) |
| Purpose | Enhance regulatory oversight, promote self-governance, early risk identification, and improve industry standards. |
| Key Entity | Finance Industry Development Council (FIDC) |
| Recognition Date | October 2025 |
| Framework | RBI's Omnibus Framework for Recognising SROs (2024) |
| Eligibility Criteria | Must be a Section 8 not-for-profit company, diversified ownership (<10% by a single entity), sufficient net worth, and sector representation. |
| NBFC Sector Contribution | Nearly one-third of India's total lending, serving MSMEs, vehicle finance, housing, and micro-enterprises. |
| Past Challenges | IL&FS default (2018) highlighted liquidity management, asset-liability mismatches, and corporate governance issues. |
| RBI's Role | Direct regulation of thousands of NBFCs, creating a significant supervisory burden. |
| FIDC's Responsibilities | Draft and enforce a code of conduct, monitor compliance, establish dispute resolution, promote financial literacy, act as an early warning system, and ensure at least 10% NBFC membership in 2 years. |
| Key Functions of FIDC | Code of conduct, compliance monitoring, dispute resolution, financial education, early warning system. |
| Membership Target | Bring ≥10% of NBFCs under its membership within 2 years. |
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