Draft Framework For Self-Regulatory Organisations(S) In The Fintech Sector

– JANUARY 15, 2024

RBI has released the draft framework for self-regulatory organisation(s) in the FinTech Sector (‘Framework’) reiterating the role of the FinTech Self-Regulatory Organisation (‘SRO-FT’) in dealing with data privacy, customer protection, cyber-security and grievance handling.

The Framework seeks to provide a structure for such SRO-FT which includes broad functions, governance standards and eligibility criteria for the grant of recognition. 

The SRO-FT is required to do the following:

1. Frame baseline standards and code of conduct and effectively monitor and enforces them.
2. Provide specialised knowledge and expertise, offer guidance and capacity building through training programs to help create a safe and secure FinTech ecosystem.
3. Act in an independent body, free from influence of any person or entity and is impartial in its decision-making.
4. Encourage its members to comply with statutory and regulatory orders and/or guidelines.
5. Act as a repository of the data of its members’ activities.

The SRO-FT shall be additionally tasked with drafting standard agreements to be used by FinTech Companies, deploying suitable survey mechanisms for effectively monitoring the activities of the FinTech Sector.