RBI Issues Draft Norms On FinTech SROs

The Reserve Bank of India has come out with a draft framework that lays down broad functions, governance standards, and eligibility criteria for setting up a self-regulatory organization for fintech companies (SRO-FT).

- Gopika Gopakumar

However, the RBI has left it to the industry to decide whether there should be a single SRO or multiple SROS.

"Given the diverse nature of fintechs, restricting to one SRO-FT could dilute some industry concerns, while having multiple SRO-FTS could undermine the representative character of self-regulation. A consensus on these issues would be crucial to the effectiveness of self-regulation," the central bank said in its draft norms.