RBI proposes to set up fintech repository by April 2024

The Reserve Bank of India (RBI) on December 8 announced to set up a fintech repository by April 2024. "We encourage fintechs to provide relevant information voluntarily to this repository," RBI Governor Shaktikanta Das said.

On November 23, RBI Deputy Governor M Rajeshwar Rao said that the Indian regulators need to continuously work to redefine regulations and regulatory framework to support innovations in the fintech industry.

“The Indian fintech space needs regulations and regulatory framework to innovate further. We also need to continuously work to redefine regulations and regulatory frameworks to support these innovations and delivery," Rao said at a banking conference in Mumbai.

Additionally, a self-regulatory organisation (SRO) for the fintech and digital lending industries will come up in the next three to six months, industry players involved in the discussions with the regulator said.

Also read: Fintechs to get self-regulatory organisation in 3-6 months, say industry players

An SRO is a non-governmental organisation (NGO) that sets monitoring standards for industry players and works as a bridge between the industry and the regulator. For example, MFin is an SRO for the microfinance sector.

Industry players from the Digital Lenders Association of India (DLAI) and the Fintech Association for Consumer Empowerment (FACE) said that discussions are constantly on with the Reserve Bank of India (RBI) to formulate an SRO for the industry.

SRO for fintechs

RBI Governor Shaktikanta Das, on September 6, urged fintechs to establish an SRO over the next year. "I would like to use this opportunity to urge and encourage the fintechs to establish a Self-Regulatory Organisation themselves," Das said in a speech at Global Fintech Fest (GFF) 2023 in Mumbai.

Das further said, “Digital innovations, at times, have also led to cyber-risk and data security-related issues. Illustratively, the mushrooming of illegal loan apps, many of which had their origins in foreign jurisdictions, has led to serious concerns about breaches of data privacy, unethical business conduct, the levying of exorbitant interest rates, and harsh recovery practices.”