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FinTech are entities that provide technological solutions for delivery of financial products to consumers or provide regulatory compliance in partnership with traditional financial institutions.
- FinTech have redefined financial services by saving time, enhancing access, and lowering costs. However, they have also raised concerns like customer protection, data privacy, etc.
- Therefore, RBI released SRO-FT framework.
About SRO-FT framework
- SRO is an industry-led entity responsible for establishing and enforcing regulatory standards, promoting ethical conduct, ensuring market integrity, among its members.
- Key highlights
- SRO-FT to be built on a ‘representative’ structure to draw collective expertise of its members.
- SRO-FT should be independent from influence.
- SRO-FT should not set up entities / offices overseas without prior approval of RBI.
- SRO-FT should put in place systems for managing ‘user harm’ instances that come to its notice or are referred to it by RBI or any other stakeholder.
- User harm includes fraud, unfair practices, unauthorized transactions, etc.
- SRO-FT should be an entity domiciled / registered in India.
Need of SRO-FT
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