The Reserve Bank of India (RBI) on 28 August said it has decided to recognise the Fintech Association for Consumer Empowerment (FACE) as an SRO-FT.
The RBI had received three applications.
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, the RBI said.
The Reserve Bank had issued the ‘Framework for Self-Regulatory Organisation(s) in the FinTech Sector’ (Framework) and invited applications for recognition as Self-Regulatory Organisation in the FinTech Sector (SRO-FT).
Later, speaking at the Global Fintech Fest, the RBI Governor Shaktikanta Das said a preferred approach for achieving balance between innovation and prudent regulation involves self-regulation within the fintech sector.
Self-Regulatory Organisations (SROs), comprising industry participants and having a good understanding of the sector’s unique challenges and opportunities, would be in a position to give 17 appropriate suggestions to the Regulators on regulations that are both practical and effective, the Governor said.
The announcement of a framework for recognition of Self-Regulatory Organisations for FinTech (SRO-FT) by the Reserve Bank marks a pivotal step forward in this direction, Das added.
Through regular consultations, feedback mechanisms and policy dialogues, the SROs would facilitate open communication and enable fintechs to stay informed about regulatory expectations and priorities, Das said.