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The Reserve Bank of India (RBI) has published a Draft Framework for recognising Self-Regulatory Organisations (SROs) for the FinTech sector, marking a key step toward strengthening oversight while supporting innovation in the rapidly growing industry.
FinTech companies continue to transform financial services by enhancing accessibility, improving efficiency, and reducing costs. The RBI emphasised the need for a balanced approach—facilitating industry innovation while ensuring consumer protection and risk management. Self-regulation is seen as an effective mechanism to achieve this balance, allowing industry participants to collectively uphold standards and best practices.
The newly released draft framework outlines the core characteristics, functions, and governance standards expected of an SRO in the FinTech domain. It covers responsibilities such as promoting ethical conduct, ensuring compliance, developing industry standards, and acting as a bridge between the industry and the regulator.
The RBI has invited comments and feedback from stakeholders and the public until end-February 2024 via email. The final guidelines will be issued after considering all responses.
[RBI]