The Reserve Bank of India said on Wednesday that it has recognised the Fintech Association for Consumer Empowerment as a self-regulatory organisation for the fintech sector.
Out of the three applicants, the central bank returned one application with instructions for resubmission after meeting specific requirements, the country's central bank said in a media statement, adding that the third application is still under review.
In June, the RBI invited applications for recognizing fintech SROs. With an aim to promote healthy and sustainable development for the fintech sector under its oversight, the RBI in May had finalised the framework for establishing SROs within the fintech industry.
At the sidelines of the Global Fintech Fest event, Governor said that there is no need for several SROs and that two-three entities are enough.
According to the SRO framework, fintech companies are those that are provide technological solutions for delivering financial products and services to businesses and consumers, independently or in partnership with traditional financial institutions.
The SRO-FT, operating with objectivity, credibility, and responsibility, is expected to play a pivotal role in aligning its members with regulatory priorities. This includes advocating for necessary changes and promoting an alliance between industry players and the central bank.
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