RBI finalizes framework for self-regulation of the fintech industry | India

TThe Reserve Bank of India (RBI) has finalized a framework for the recognition of self-regulatory organizations (SROs) in the fintech sector. On January 15 this year, the RBI published the draft framework for public review.

After reviewing the information provided, the central bank has now completed work on the “Framework for the Recognition of Self-Regulatory Organizations for the FinTech Sector.” The initiative encourages fintech companies to set and apply their own industry standards and best practices by creating SROs.

To be considered an SRO, entities must be incorporated as nonprofit corporations, meet certain net worth and infrastructure requirements, and maintain a nondiscriminatory membership fee structure. In addition, SROs will also be responsible for monitoring and enforcing compliance among members, setting standards and implementing grievance mechanisms.

They will act as a bridge between the industry and the RBI, providing sector insights, informing the RBI of developments and helping to shape a regulatory environment that is conducive to innovation, while ensuring consumer protection. Interested entities can apply for recognition through the official website of the RBI.