2 min readMumbaiJan 16, 2024 04:49 AM IST
A self-regulatory organisation (SRO) in the fintech sector should operate independently and be development-oriented, actively contributing to the growth and evolution of the industry, according to a draft framework released by the Reserve Bank of India (RBI) on Monday.
An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of entities in the industry (members) with the aim of protecting the customer and promoting ethics, equality, and professionalism.
In September last year, RBI had asked fintechs to establish an SRO themselves.
In the draft framework for recognising SROs for the fintech sector, RBI said a fintech SRO (SRO-FT) should maintain impartiality, avoid conflicts of interest, and ensure unbiased oversight over its members.
“To maintain credibility, the SRO-FT should operate independently, free from the influence of any single member or group of members,” RBI said.
The SRO-FT should maintain impartiality, avoid conflicts of interest, and ensure unbiased oversight over its members. Independence would enhance the reputation of the SRO-FT as a neutral and reliable entity, essential for gaining the trust of both industry participants and regulators, the RBI said.
RBI has sought feedback on the draft framework from various stakeholders by end of February 2024.
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