The Reserve Bank of India (RBI) has finalized its Framework for Recognizing Self-Regulatory Organisations for the Fintech Sector (SRO-FT) following the collection of feedback on a draft framework released in January of this year.
RBI will initiate the process of recognizing SROs that fulfill the criteria outlined in the SRO-FT framework. Organizations seeking recognition can submit their applications, and those that qualify will be listed on RBI’s website.
This initiative aims to promote self-regulation within India’s fintech sector and establish a regulatory framework capable of managing emerging technologies and integrating new entrants into the industry.
In 2023, RBI announced a credit tech program designed to enhance credit transactions via a public technology platform and develop a digital payments infrastructure.
Bharat Dhawan, managing partner at Mazars in India, remarked on the framework, stating that it represents a progressive approach that will enhance regulatory compliance and ethical standards while reinforcing market integrity and transparency. He expressed confidence that these industry-led SROs will contribute to a more robust and trustworthy fintech ecosystem, benefiting all stakeholders involved.
Yashoraj Tyagi, CEO of CASHe, added that this initiative signifies a crucial advance in safeguarding customer protection, data privacy, cybersecurity, grievance handling, internal governance, and the overall integrity of the financial system in the rapidly evolving industry.