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Draft Framework for Fintech SRO Independence and Development Orientation

  • 17 Jan 2024

On 15th January, 2024, the Reserve Bank of India (RBI) issues a draft framework emphasizing the need for independence and development orientation in fintech sector Self-Regulatory Organizations (SROs).

Key Points

  • Development-Oriented SRO: The draft framework highlights the necessity for a fintech Self-Regulatory Organization (SRO-FT) to actively contribute to industry growth and evolution.
  • Independence and Impartiality: The SRO-FT is urged to maintain impartiality, avoid conflicts of interest, and ensure unbiased oversight over its members.
  • Credibility and Trust: Independence is identified as crucial for the credibility of the SRO-FT, making it a neutral and reliable entity. This is essential for gaining the trust of both industry participants and regulators.
  • Establishment by Fintechs: In September of the previous year, RBI had directed fintechs to establish their own SRO. The current framework builds on this directive.
  • Stakeholder Feedback: The central bank has called for feedback on the draft framework from various stakeholders, with the deadline set at the end of February 2024.