TestCloud
Prep • Practice • Perform
Log In

RBI Introduces Framework for Recognizing SROs in the AA Ecosystem.

Banking & Finance | Dated: 14 Mar 2025

In March 2025, the Reserve Bank of India (RBI) introduced a new framework for the recognition of Self-Regulatory Organisations (SROs) within the Account Aggregator (AA) ecosystem. The framework outlines the key characteristics, responsibilities, eligibility criteria, and governance aspects of SRO-AA.

🎯 Key Highlights:

  • - The framework mandates that an SRO-AA must be set up as a not-for-profit company, registered under Section 8 of the Companies Act, 2013.
  • - The eligible entity is required to maintain a minimum net worth of Rs 2 crore within one year after recognition as an SRO-AA by RBI, or before starting operations, whichever comes earlier.
  • - The eligible entity must not hold 10% or more of its paid-up capital either individually or in collaboration with others.

💡 Other Important Facts:

  • (i) The SRO-AA will operate within the existing regulatory framework for the AA ecosystem.
  • (ii) Technical specifications will continue to be framed and published by the Reserve Bank Information Technology Private Limited (ReBIT) based in Mumbai.
  • (ii) Interested and eligible parties must apply via the PRAVAAH (Platform for Regulatory Application, Validation, and Authorisation) portal before June 15, 2025.

📚 Test Your Knowledge:

Which organization recently introduced a framework for recognizing Self-Regulatory Organizations (SROs) in the AA ecosystem?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai