RBI finalises Omnibus Framework for SROs in regulated entities

Syllabus: GS-III,  Subject: Economy, Topic: Banking and Financial Intermediaries, Issue: Framework for SROs

Context:The Reserve Bank of India (RBI) has finalised an Omnibus Framework for recognizing Self-Regulatory Organizations (SRO) for regulated entities.

Self-regulatory organisations (SROs)

• They are essentially non-governmental organisations that set rules and enforce standards within a specific industry or profession.
• They act like a bridge between the industry and the government.

Objectives of the framework :

• Fostering professionalism and ethical conduct within their respective sectors.
• Promoting innovation and addressing critical industry concerns
• Encouraging adherence to self-regulatory principles and best practices

Recognition Process: The framework outlines the application process and eligibility criteria for entities seeking recognition as SROs by the RBI.