The Reserve Bank of India (RBI) has finalized the framework for recognizing self-regulatory organizations (SROs) in the fintech sector.
On January 15, the RBI released a draft framework for public comment, which has now been reviewed and finalized as the “Framework for Recognizing Self-Regulatory Organizations for the FinTech Sector.”
This initiative aims to encourage fintech companies to establish and adhere to their own industry standards and best practices through SROs. To be recognized 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 are responsible for monitoring and enforcing compliance among members, establishing standards, and implementing grievance redressal mechanisms.
SROs will serve as a bridge between the industry and the RBI, providing sectoral insights, updating the RBI on developments, and helping to create a regulatory environment that fosters innovation while ensuring consumer protection. Interested entities can apply for recognition through the RBI’s official website.
Source: law.asia
