RBI recognises FIDC as SRO for the NBFC sector

Introduction

  • Overview of the Reserve Bank of India’s recognition of the Finance Industry Development Council (FIDC) as the SelfRegulatory Organisation (SRO) for the nonbanking financial company (NBFC) sector
  • Outline of what SROs are and the eligibility norms set by the RBI

Why in news?

  • The RBI has officially recognised FIDC as the SRO for the NBFC sector

Background

  • Under the RBI’s Omnibus Framework, an SRO is a nongovernmental organisation authorised by a regulator to regulate and oversee a particular industry or sector
  • Such organisations derive authority from membership agreements
  • They operate within the boundaries defined by law

Significance

  • Establishes FIDC as the NBFC sector’s selfregulatory body

Facts/General knowledge

  • RBI eligibility norms for an SRO include:
  • Must be a Section 8 notforprofit company
  • Must have diversified shareholding, with no entity holding more than 10% of capital
  • Must maintain sufficient net worth

Kerala to Be Declared India’s First Extreme PovertyFree State

Introduction

  • Kerala is set to be officially declared free of extreme poverty.
  • The declaration will be made by Chief Minister Pinarayi Vijayan on 1 November 2025 at Central Stadium in Thiruvananthapuram.
  • This milestone reflects sustained focus on inclusive growth and targeted welfare programmes, setting a precedent for other states.

Why in news?

  • The formal announcement is scheduled for 1 November 2025 during a public event in Thiruvananthapuram.
  • It marks the culmination of a stateled initiative focused on eradicating extreme poverty.

Background

  • The extreme poverty eradication programme was launched in 2021, shortly after the LDF government began its second term.
  • It was one of the first Cabinet decisions post2021 elections, as stated by Minister for Local SelfGovernments M.B. Rajesh.
  • Core aims: Identify and uplift families in severe economic distress.
  • Integrate state and local resources for housing, food, health, and income support.
  • Enable longterm rehabilitation through employment, education, and asset creation.
  • The multisectoral approach ensured families received not just aid but a pathway out of chronic poverty.

Significance

  • Highlights Kerala’s sustained commitment to inclusive growth and targeted welfare.
  • Sets a precedent for other states to follow through a comprehensive, multisectoral model.

Facts/General knowledge

  • ‘Extreme poverty’ generally refers to households that:
  • Lack access to basic income, shelter, food, and health.
  • Are often excluded from social welfare schemes due to documentation or isolation.
  • Face multigenerational poverty with little upward mobility.
  • Kerala’s poverty mapping relied on:
  • Social surveys.
  • Panchayatlevel data.
  • Groundlevel interventions by local bodies and NGOs.