Reserve Bank of India on August 28 said it has been decided to recognise the Fintech Association for Consumer Empowerment (FACE) as Self-Regulatory Organisation in the FinTech Sector (SRO-FT).
Three applications for recognition as SRO-FT have been received. Each application was examined against the relevant requirements under the framework, said RBI.
Of the remaining two applications, one application has been returned with a provision for resubmission after meeting certain requirements. The third application is under examination, added RBI.
In May 2024, RBI came up with the final framework for establishing SROs in the fintech industry.
The SRO-FT (fintech) will operate "objectively, with credibility and responsibility" under the oversight of the central bank, and will work towards "healthy and sustainable development" of the sector, the rules said.
The framework defines fintech as entities providing technological solutions for delivery of financial products and services to businesses and consumers or encompassing regulatory and supervisory compliance in partnership with traditional financial institutions or otherwise.
The SRO-FT should be capable of motivating its members to align with regulatory priorities. This should involve facilitating communication between industry players and RBI, advocating for necessary changes, and promoting a culture of compliance, RBI said.
On September 6, 2023, RBI Governor Shaktikanta Das urged fintechs to establish SRO over the next year.
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