India names first self-regulatory organisation for fintechs

There are two more applications pending, according to the central bank.

The Reserve Bank of India has named the Fintech Association for Consumer Empowerment (FACE) as its first self-regulatory organisation (SRO) for the fintech sector.

An SRO acts as an industry-led entity responsible for establishing and enforcing regulatory standards, promoting ethical conduct, and ensuring market integrity, the central bank said in a statement posted on its website.

The SRO will also be in charge of resolving disputes and fostering transparency and accountability amongst its members.

The RBI introduced the framework for SRO(s) in the fintech sector in May 2024, and has received and assessed three applications since.

Of the remaining two applications, one has been returned with provision for resubmission after meeting certain requirements, according to RBI. 

The third application is under examination.

The new framework is aimed at encouraging self-governance amongst the fintech industry in India, the RBI said in its framework outline launched in May 2024.