RBI Introduced Framework for Recognising SROs for AA Ecosystem

Current Context: On March 12, 2025, the Reserve Bank of India (RBI) introduced a framework for recognizing Self-Regulatory Organisations (SROs) within the Account Aggregator (AA) ecosystem.

This initiative aims to enhance governance, promote best practices, and ensure the sustainable growth of the AA ecosystem.

Key Highlights:

Eligibility: SROs must be not-for-profit entities under Section 8 of the Companies Act, 2013, with a minimum net worth of ₹2 crore.
Responsibilities: SROs will establish benchmarks for professional conduct, resolve disputes, and ensure transparency and independence.
Application Process: Interested entities can apply via the PRAVAAH portal by June 15, 2025.
Significance: Supports smoother adoption of the AA framework, which facilitates secure data exchange between Financial Information Providers (FIPs) and Users (FI-Us).

Question:

Q.1 What is the minimum net worth requirement for an entity to be recognized as an SRO under RBI’s AA framework?
a) ₹1 crore
b) ₹2 crore
c) ₹5 crore
d) ₹10 crore

Answer: b) The RBI mandates that SROs within the AA ecosystem must have a minimum net worth of ₹2 crore.