New Delhi [India], January 15 : The Reserve Bank of India on Monday placed on its website a draft framework for recognising self-regulatory organisations (SRO) for FinTech sector.
The draft framework lays down the characteristics of FinTech self-regulatory organisations, including its functions and governance standards.
Comments and feedback are sought from stakeholders and members of the public by the end of February 2024, through e-mail. The final framework will be issued, taking into account stakeholder and public responses.
FinTechs are significantly reshaping the landscape of financial services by streamlining processes, improving accessibility, and reducing costs.
"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," RBI said.
Self-regulation within the FinTech sector is a preferred approach for achieving the desired balance, the central bank said.
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