RBI readies framework for SROs

India's central bank has come up with a final omnibus framework for self-regulatory organisations (SRO), mandating them to set up grievance redressal mechanisms for members and a non-discriminatory fee structure. The Reserve Bank of India (RBI) omnibus framework prescribes the broad objectives, functions, eligibility criteria and governance standards that will be common for all SROs, irrespective of the sector.

"The framework is the minimum requirement and the recognised SROs will be encouraged to develop their best practices," RBI said.

The dispute resolution process should consistently use efficient, fair and transparent policies and procedures that are in line with the regulatory and statutory requirements, the central bank said. They are also told to offer counselling on restrictive, unhealthy and such other practices which may be detrimental to growth of the sector. The RBI also told SROs to frame a code of conduct for their members and to monitor adherence to the code.