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January 15, 2024

RBI wants your thoughts on fintech’s Self-Regulatory Organisations.

TLDR: The Reserve Bank of India (RBI) has proposed a framework for recognising self-regulatory organisations (SROs) in the fintech sector. The aim is to strike a balance between innovation and regulations to protect consumer interests. FinTechs are transforming the financial services landscape by streamlining processes, enhancing accessibility, and lowering costs, according to the RBI. The draft framework outlines the characteristics and functions of an SRO-FT and highlights the importance of self-regulation in achieving a healthy balance in the sector. The RBI will seek applications for SROs on an as-needed basis, either for the overall fintech sector or for specific sub-sectors. The number of SROs that will be recognised will depend on the number and nature of applications received. SROs should be independent, representative of the fintech industry, and promote responsible innovation. They should also establish guidelines for consumer protection, data security, and data privacy, among other things. The draft framework is open for public comments and feedback until the end of February.