RBI to release final framework for fintech SROs by April-end: Governor Das

Mumbai, Apr 5, 2024 

The Reserve Bank of India (RBI) will release the framework for a self-regulatory organisation (SRO) for fintechs by the end of April, RBI Governor Shaktikanta Das said during the post-monetary policy press conference.

Das said the banking regulator was working towards operationalising one SRO for fintechs by the Global Fintech Festival (GFF) scheduled in September.

“As I had mentioned in last year’s GFF, we would like one SRO relating to fintech to be operational. We are working towards that,” he said.

An SRO is a non-governmental organisation that acts as a bridge between industry players and the regulator. It also sets standards for the conduct of entities operating in the country.

RBI Deputy Governor T Rabi Sankar said the banking regulator was examining the comments from stakeholders on the draft framework for recognising SROs for the fintech sector.

“On the SRO (for) fintechs, we have received comments. The last date to send them was by the end of February. We are examining those comments. We will be out with a framework based on which entities can apply for SRO,” he said.

Industry groups seeking to be an SRO for the fintech sector have cheered the RBI’s timeline to release the final framework.

“The RBI has been systematically driving the conversation on the SROs to this point. The governor mentioned a time-bound approach to operationalise the SRO-FT. We eagerly await the final framework, knowing SRO reality is getting closer is hugely encouraging,” said Sugandh Saxena, chief executive officer (CEO), Fintech Association for Consumer Empowerment (FACE), an industry body for digital lenders.

Jatinder Handoo, CEO, Digital Lenders Association of India (DLAI) said, “The industry association would study the final SRO-FT framework, when released, and take steps accordingly.”

Handoo added the association had seen a rise in queries for regulatory guidance.

[The Business Standard]