RBI Issues Omnibus Framework for Recognizing SROs for Regulated Entities

Current Context: On March 21, 2024, the Reserve Bank of India (RBI) issued an Omnibus Framework for recognizing Self-Regulatory Organizations (SROs) for its regulated entities.

• This framework was finalized after examining the inputs received from a draft framework that was issued for public comments on December 21, 2023.
• The Omnibus Framework contains broad parameters such as objectives, responsibilities, eligibility criteria, governance standards, application process, and other basic conditions for granting recognition.
• These parameters will be common for any SRO proposed to be recognized by the RBI. 
• Other sector-specific guidelines like the number of SROs, membership, etc., will be issued separately by the respective departments of the RBI wherever a sectoral SRO is intended to be set up.
• The SROs will be expected to operate with credibility, objectivity, and responsibility under the oversight of the regulator, with the objective to improve regulatory compliance.
• They are expected to adhere to a set of overarching objectives for the betterment of the sector they represent, foster advancement, and address critical industry concerns within the broader financial system.
• The primary responsibility of the SRO towards its members would be to promote best business practices.
• The SROs would be a not-for-profit company registered under Section 8 of the Companies Act, 2013.

Question:

Q.1 The Omnibus Framework issued by the RBI contains broad parameters for what?
a. Recognizing Self-Regulatory Organizations (SROs)
b. Regulating the financial market
c. Issuing new currency notes
d. Implementing monetary policy