Brief Overview:
Draft framework for self-regulatory organizations is proposed by RBI in the FinTech sector (“SRO-FT”) on 15th January 2024 (“Draft Framework”).
Technical Details:
The key focus areas of the Draft Framework are:
1) Characteristics and operations;
2) Eligibility and membership, including criteria for Board of Directors and Key Managerial Personnel;
3) Functions and responsibilities; and
4) Governance and management.
Issues for consensus:
1) Incentives for membership of SRO-FT;
2) Composition of SRO-FT members; and
3) Number of SRO-FTs that would require recognition.
Comments / Feedback from stakeholders and members of the public on the Draft Framework to be sent by end February 2024
JC Takeaways:
With the FinTech industry growing at a break-neck speed, the Draft Framework is an attempt towards striking a balance between facilitating innovation by the FinTech industry and meeting regulatory priorities for unregulated FinTech.
For further details, please see:
https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1260
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
● Mr. Ankit Sinha (ankit.sinha@jclex.com)
● Ms. Rupul Jhanjee (rupul.jhanjee@jclex.com)
