The Reserve Bank of India (RBI) has rolled out its highly anticipated Framework for Recognising Self-Regulatory Organisations for the Fintech Sector (SRO-FT). This move, following feedback on a draft framework shared in January this year, aims to foster self-regulation within India’s burgeoning fintech landscape.
Under this new framework, the RBI will initiate the recognition process for SROs that meet the stipulated requirements. Eligible SROs can apply for recognition, and those that qualify will be listed on the RBI’s website. This strategic initiative seeks to ensure robust regulatory infrastructure, keeping pace with the rapid advancements in financial technology and accommodating new market entrants.
In a bid to further streamline the fintech sector, the RBI announced a credit tech program in 2023 aimed at enhancing credit transactions on a public tech platform and establishing a comprehensive digital payments infrastructure.
Bharat Dhawan, Managing Partner at Mazars in India, praised 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 of CASHe, echoed this sentiment: “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.”
