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The RBI has released a draft framework for self-regulatory organizations (SROs) in the fintech sector. The framework outlines the characteristics, functions, and governance standards that an SRO should possess. The RBI emphasizes the importance of achieving a balance between facilitating innovation and meeting regulatory priorities to optimize the contribution of the fintech sector. The framework highlights that the SRO should be representative of the fintech sector, frame standards and rules of conduct, monitor and enforce them, and provide specialized knowledge and expertise. The SRO should also act as a legitimate arbiter of disputes, promote compliance, and have the power to investigate and take disciplinary action against members for non-adherence to codes and standards. The RBI is seeking public comments on the draft framework, and the final framework will be issued after considering stakeholder responses.
The key points from the article include:
- The RBI has released a draft framework for self-regulatory organizations (SROs) in the fintech sector.
- The framework outlines the characteristics and functions that an SRO should possess.
- The SRO should be representative of the fintech sector and have the authority to frame standards, monitor compliance, and resolve disputes.
- The RBI is seeking public comments on the draft framework.
