Fintech
RBI encourages self-regulation of fintech with new framework
The Reserve Bank of India (RBI) has finalized its framework for recognition of self-regulatory organizations for the fintech sector (SRO-FT), after inviting feedback for a draft framework in January this year.
RBI will initiate the process of initiating recognition of SROs that meet the requirements of the SRO-FT framework. SROs seeking recognition can apply and those found eligible will be published on the RBI website.
The move aims to encourage self-regulation of the fintech sector in India and ensure that a regulatory infrastructure exists to manage future technologies introduced into the sector and newcomers to the space.
In 2023, RBI announced a credit technology program to increase credit transactions on a public technology platform and create a digital payments infrastructure.
Bharat Dhawan, Managing Partner of Mazars in India, commented on the framework: “This forward-thinking approach will not only improve regulatory compliance and ethical standards, but will also strengthen market integrity and transparency. As a consultancy firm, we are confident that These industry-led projects SROs will create a more robust and reliable fintech ecosystem, benefiting all stakeholders.”
Yashoraj Tyagi, CEO of CASHe added: “This initiative marks a significant step towards ensuring customer protection, data privacy, cybersecurity, complaint management, internal governance and overall integrity of the financial system all within our rapidly evolving industry.”