The Reserve Bank of India has proposed a framework for self-regulatory organisation for fintech companies aimed at setting standards for the industry, oversight and enforcement, grievance redressal, and dispute resolution.
“By pivoting towards a culture of self-governance, FinTechs could proactively set and adhere to industry standards and best practices. This approach could empower the sector to demonstrate its commitment to responsible conduct and innovation even in the absence of formal regulation. Through collaboration, the industry could collectively identify and address challenges, foster an environment where innovation flourishes, and guide a shared commitment to ethical business practices. Self-regulation also offers the advantage of adaptability to rapid technological advancements and evolving market dynamics,” the RBI said on Monday.
Eligibility
On eligibility and membership, the draft norms said the applicant should be set up as a not-for-profit firm and should have…