Self-Regulatory Organisation (SRO) for fintech entities

• The Reserve Bank of India (RBI) has proposed setting up a Self Regulatory Organisation (SRO) for fintechs to address several key objectives and concerns within the fintech industry.

ABOUT SELF-REGULATORY ORGANISATION:

• It is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of entities in the industry (members).
• Aim: Protecting the customer and promoting ethics, equality, and professionalism.
• These typically collaborate with all stakeholders in framing rules and regulations.

WHAT ARE THE FUNCTIONS OF AN SRO?

• The recognised SRO will serve as a two-way communication channel between its members and the RBI.
• It will work towards establishing minimum benchmarks and standards and help instil professional and healthy market behaviour among its members.
• These will impart training to the staff of its members and others and will conduct awareness programmes.
• It will establish a uniform grievance redressal and dispute management framework across its members.