Playing By The Rules: Why Self-regulation Is Best For Fintechs

The Reserve Bank of India has approved the Fintech Association for Consumer Empowerment as the fintech industry's first self-regulatory organisation (SRO-FT). Jitendra Soni explains how this will help capitalise on its growth potential while addressing the specific risks it poses to the financial system.

What is SRO-FT?

AN SRO-FT IS an industry-led entity that establishes and enforces regulatory standards, promotes ethical conduct, ensures market integrity, resolves disputes, and fosters transparency and accountability among its members. It operates under the oversight of the Reserve Bank of India (RBI). As per the framework, a fintech entity can join multiple SROs and are encouraged to participate in at least one. The SRO-FT should be a fair and transparent arbiter of disputes, fostering a stable fintech environment. The SRO-FT should guide members to align with regulatory priorities, facilitate communication with the RBI, and enforce compliance while