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.
