RBI’s framework release today suggests Fintech SRO to be development oriented, true representative

On the Independence from Influence front, the central bank said to maintain credibility, the SRO-FT should operate independently, free from the influence of any single member or group of members. This would ensure refined decision-making and prevent the organisation from being swayed by the interests of a dominant few.

Members should perceive the SRO-FT as a legitimate arbiter of disputes. This would require a transparent and fair resolution mechanism for disputes arising among members that instil confidence in the FinTech
sector, RBI said.

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 self-regulatory organisations (SRO) over the next year.

"I would like to use this opportunity to urge and encourage the FinTechs to establish a Self-Regulatory Organization themselves," Das said in a speech, at Global Fintech Fest (GFF) 2023.

After this, on October 19, 2023, RBI executive director Ajay Kumar Choudhary said the central bank doesn't want to go for fintech regulations immediately but a self-regulatory organisation (SRO) is likely to come up within this year.

“Everything has to be done in a phased manner. We don’t want to go for Fintech regulations immediately but what the Governor announced is SRO mechanism that is likely to come within this year,” Choudhary said on the sidelines of 18 Annual Summit & Awards, Banking & Financial Sector Lending Companies.