RBI Recognises FACE As The First Self-Regulating Organisation In Fintech

The Reserve Bank of India (RBI) announced on August 28 that the Fintech Association for Consumer Empowerment (FACE) has become the first recognised Self-Regulating Organisation in the FinTech sector (SRO-FT). The RBI stated that it had received three applications for SRO-FT recognition, each thoroughly evaluated against the established framework. One application was returned with provisions for resubmission upon meeting specific criteria, while the third remains under review.

In May 2024, the RBI finalised the framework for establishing SROs in the FinTech sector to foster “healthy and sustainable development” under its oversight. The framework defines FinTech entities as providers of technological solutions for financial products and services to businesses and consumers, either independently or in partnership with traditional financial institutions.

The SRO-FT is expected to operate with objectivity, credibility, and responsibility, playing a crucial role in aligning its members with regulatory priorities, advocating necessary changes, and fostering a cooperative culture between industry participants and the RBI. Governor Shaktikanta Das had called for the creation of a self-regulatory organisation within the FinTech sector by 2024 during his address on September 6, 2023. The recognition of FACE as an SRO establishes a benchmark for self-regulation in India’s fast-evolving fintech landscape.