SRO-FT
The Reserve Bank of India (RBI) has issued the Framework for Recognising Self-Regulatory Organisation for the FinTech Sector (SRO-FT) for better self governance and compliance by firms in this space.
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.
The SRO-FT should operate objectively, with credibility and responsibility under the RBI’s oversight.
It should strive towards healthy and sustainable development of the FinTech sector and, if necessary, identify a glide path to a phased regulatory and/or supervisory compliance
Applicants will be required to have a minimum net worth of Rs 2 crore within a year of being recognised as an SRO-FT.
The entity should be a not-for-profit company.
The shareholding of an SRO-FT should be diversified, and no entity should hold 10 per cent or more of its paid-up share capital.
Organisations such as the Payments Council of India (PCI), Fintech Association for Consumer Empowerment, DLAI, are some of the leading bodies in the race to apply for an SRO-FT.
SRO-FTs will be required to update the RBI on fintech developments and notify it of violations by its members on matters related to regulations or systemic issues within the space.
COMMENTS