Team Blitz India
NEW DELHI: Indian financial technology (fintech) firms should create a self-regulatory organisation (SRO) that will ensure statutory and regulatory compliance, the Reserve Bank of India (RBI) said in a draft framework released on January 15.
“The body would work towards strengthening governance standards and addressing the sector’s needs and challenges,” the central bank said.
The draft framework comes at a time when the fintech industry is growing at a break-neck speed due to surging demand for digital payments and borrowings. In September, RBI Governor Shaktikanta Das had urged fintech firms to create such a body.
“Achieving a healthy balance between facilitating innovation by the industry on the one hand, and meeting regulatory priorities in a manner that protects consumers and contains risk, on the other, is crucial to optimising the contribution of the FinTech sector,” the RBI said.
Self-regulation within the fintech sector is a preferred approach for achieving the desired balance, it added.