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The RBI, on Friday, announced that it will issue multiple directions on project finance, self-regulatory organisations (SROs), and internal ombudsman of lenders.
The RBI said that project finance is generally characterised by various complexities, including long gestation periods. The regulator has, thus, reviewed the prudential norms for projects under implementation, and will issue a comprehensive regulatory framework for all regulated entities with the objective of strengthening and harmonising the framework.
The central bank will also issue an omnibus framework for recognising SROs for various Regulated Entities. The framework shall prescribe the broad objectives, functions, eligibility criteria and governance standards common for all SROs across sectors.
“SROs can play an important role in strengthening compliance culture among their members and also provide a consultative platform with RBI for policy making,” Governor Shaktikanta Das said in his statement.
RBI said that it may prescribe sector-specific additional conditions at the time of calling for applications for recognising such SROs. To begin with, it will issue a draft of the omnibus framework for stakeholder comments.
internal ombudsman
Further, the central bank will consolidate and issue master directions on internal ombudsman framework, introduced in 2015 for banks and later extended to other players.
“The guidelines on Internal Ombudsman framework currently in operation for various categories of REs have similar design features but carry certain variations on operational matters. Based on the learnings from the implementation of the extant IO guidelines, it has been decided to harmonise the same and issue a consolidated Master Direction,” the central bank said.
The master directions will bring uniformity in matters like timeline for escalation of complaints, exclusions, temporary absence of the Internal Ombudsman, minimum qualifications for appointing an Internal Ombudsman and updation of reporting formats. It will also introduce the post of Deputy Internal Ombudsman.
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