visimoney
TLDR: The Reserve Bank of India (RBI) has proposed a framework for recognizing Self-Regulatory Organizations (SROs) in the fintech sector. The framework aims to strike a balance between innovation and regulations, with a focus on consumer protection. The RBI will invite applications for SROs for the fintech sector and will consider the number and nature of applications received before recognizing the organizations. The SROs are expected to operate objectively, with credibility and responsibility under the oversight of the regulator. They should encourage adherence to regulatory priorities and act as a repository of information for the sector. The proposed framework also outlines the functions and responsibilities of the SROs, including guiding the conduct of their members, establishing and enforcing guidelines for consumer protection, data security, and data privacy, and providing a framework for responsible experimentation. The SROs will also be expected to establish grievance redressal and dispute resolution frameworks for their members.
Key Points:
– RBI has proposed a framework for recognizing Self-Regulatory Organizations (SROs) in the fintech sector.
– The framework aims to strike a balance between innovation and regulations, with a focus on consumer protection.
– The RBI will invite applications for SROs for the fintech sector and will consider the number and nature of applications received before recognizing the organizations.
– The proposed framework outlines the functions and responsibilities of the SROs, including guiding the conduct of their members, establishing and enforcing guidelines for consumer protection, data security, and data privacy, and providing a framework for responsible experimentation.
– The SROs will also be expected to establish grievance redressal and dispute resolution frameworks for their members.
