The Reserve Bank of India (RBI) has finalised the framework for recognising self-regulatory organisations (SROs) in the fintech sector. On 15 January this year, the RBI released a draft framework for public comment.
The central bank has now finalised the “Framework for Recognising Self-Regulatory Organisation(s) for FinTech Sector” after reviewing the input. The initiative encourages fintech companies to set and follow their own industry standards and best practices through the establishment of SROs.
To be recognised as an SRO, entities must be set up as not-for-profit companies, meet specific net worth and infrastructure requirements, and maintain a non-discriminatory membership fee structure. Additionally, SROs will also be responsible for monitoring and enforcing compliance among members, establishing standards, and implementing grievance redressal mechanisms.
They will act as a bridge between the industry and the RBI, providing sectoral insights, updating the RBI on developments, and helping to shape a regulatory environment conducive to innovation while ensuring consumer protection. Interested entities can apply for recognition through the RBI’s official website.
