TLDR: The fintech industry in India has called for the establishment of Self-Regulatory Organisations (SROs) to promote responsible innovation and protect consumer interests. The Reserve Bank of India (RBI) has released draft norms for SROs in the fintech sector, stating that they should be independent, development-oriented, and legitimate arbiters of disputes.
The fintech industry in India has welcomed the proposal to create SROs, stating that they would help foster responsible innovation and protect the interests of consumers. SROs would play a crucial role in regulating the fast-growing fintech sector in India, which has seen significant growth in recent years.
The RBI’s draft norms for SROs outline the criteria that these organizations should meet. They should be independent from any influence, development-oriented, and have a legitimate arbitration mechanism in place. The norms also require SROs to have a pre-defined code of conduct and an effective grievance redressal mechanism.
The fintech industry believes that SROs would provide a platform for collaboration between regulators, industry participants, and other stakeholders. SROs would also ensure that the regulatory framework is in line with the rapid developments in the fintech sector and would help address any concerns related to consumer protection and responsible innovation.
The establishment of SROs in the fintech sector is part of the Indian government’s efforts to promote digital innovation and financial inclusion. The government has been actively encouraging fintech startups and has launched various initiatives to support their growth.
The fintech industry has expressed its support for the RBI’s draft norms and has called for a collaborative approach towards the establishment of SROs. Industry stakeholders believe that SROs would play a crucial role in driving responsible innovation and ensuring consumer protection in the fintech sector.
Overall, the fintech industry in India sees the establishment of SROs as a positive step towards fostering responsible innovation and protecting the interests of consumers. SROs would provide a platform for collaboration and help ensure that the regulatory framework is in line with the rapid developments in the fintech sector. The industry is optimistic that SROs would contribute to the growth and development of the fintech ecosystem in India.