Self Regulatory Organisation for Fintech

CalendarToday
timer
1 min read
Self Regulatory Organisation for Fintech Blog Image

Overview:

Recently, the Reserve Bank of India (RBI) Governor asked fintech entities to form a Self-Regulatory Organisation (SRO).

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 are  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 instill 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.

 


Q1) What is a non-governmental organization?

It is a voluntary and private sector entity that operates independently of the government. NGOs are typically established to address various social, environmental, humanitarian, or developmental issues and work toward the betterment of society.

Source: Why the RBI has proposed setting up a Self Regulatory Organisation for fintech