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Informist, Wednesday, Aug 28, 2024

--RBI Das: Received 3 applications for fintech self-regulatory body 
--RBI Das: Gave nod to 1 applicant for fintech self-regulatory body 
--RBI Das: Balancing innovation, prudence needs fintech to self-regulate 
--RBI Das: Endeavour for regulation to balance innovation, prudence 
 

MUMBAI – The Reserve Bank of India has granted approval to Fintech Association for Consumer Empowerment as a self-regulatory body for the financial technology sector, RBI Governor Shaktikanta Das said at the 5th edition of the Global Fintech Fest today. Das said that the central bank had received three applications for the same.

"Through regular consultations, feedback mechanisms and policy dialogues, the SROs (self regulatory body) would facilitate open communication and enable fintechs to stay informed about regulatory expectations and priorities," Das said at the event.

Fintech Association for Consumer Empowerment takes a role in this context to promote responsible lending and responsible borrowings, as per its website. "Incubated by five fintech lending companies (Cashe, LoanTap, Fibe, KreditBee, Paysense), a non-profit Section 8 Company set up in Sep 2020, FACE now has nearly 50 members, accounting for 80% of digital lending business volume."

Of the remaining two applications, one application has been returned with a provision for resubmission after meeting certain requirements. The third application is under examination, Das said.

In order to balance out the rising innovations and to deal with the risks associated with the financial technology sector, in May the central bank came out with a framework for the formation of a self-regulatory organisations.

The main role of the self-regulatory organisation is to establish and enforce regulatory standards, promote ethical conduct, ensure market integrity, resolve disputes, and foster transparency and accountability among its members. End 

Reported by Kshipra Petkar

Edited by Akul Nishant Akhoury

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