The Reserve Bank of India (RBI) has finalised its Framework for Recognising Self-Regulatory Organisations for the Fintech Sector (SRO-FT), after inviting feedback for a draft framework in January thus year.
RBI will begin the initiation process of recognising SROs that meet the SRO-FT framework requirements. SROs seeking recognition can apply and those found eligible will be published on RBI’s website.
The move aims to encourage self-regulation of the fintech sector in India, and ensure that there is regulatory infrastructure in place to manage upcoming technologies being introduced to the industry and newcomers to the space.
In 2023, RBI announced a credit tech program to boost credit transactions on a public tech platform and establish a digital payments infrastructure.
Bharat Dhawan, managing partner, Mazars in India commented on the framework: "This forward-thinking approach will not only enhance regulatory compliance and ethical standards but also reinforce market integrity and transparency. As an advisory firm, we are confident that these industry-led SROs will create a more robust and trustworthy fintech ecosystem, benefiting all stakeholders."
Yashoraj Tyagi, CEO, CASHe added: “This initiative marks a significant step towards ensuring customer protection, data privacy, cyber security, grievance handling, internal governance, and the overall integrity of the financial system within our rapidly evolving industry."