Recognition of Finance Industry Development Council (FIDC) as SRO

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

Background and Context

• Among three applications received by RBI for SRO status in the NBFC space, only FIDC's application was complete and considered.
• The other two applications were not considered due to incomplete submissions by the deadline.
• FIDC now joins other SROs in the finance sector: 
  • Microfinance companies: Represented by Sa-Dhan and Microfinance Network (MFIN).
  • Fintechs: Represented by Fintech Association for Consumer Empowerment (FACE).

Statement from Raman Aggarwal, CEO of FIDC

• Raman Aggarwal referred to the recognition as a "red-letter day" for FIDC, marking its formal acceptance as an SRO for the NBFC sector.
• FIDC received in-principle approval by April-end, followed by completion of required formalities to secure formal recognition.

Role and Responsibilities of FIDC as an SRO

• FIDC will act as the extended arm of the regulator to ensure compliance and discipline within the sector.
• The organisation plans to make operations functional in alignment with its new responsibilities.
• FIDC will represent various segments including: 
  • NBFC-ICCs
  • NBFC factors
  • Housing finance companies
  • Infra-financing NBFCs