Form self-regulatory organisation, RBI tells fintech players

Mumbai, September 6

Fintech players should form a self-regulatory organisation for an orderly growth of the industry that is projected to have revenue of $200 billion by 2030, RBI Governor Shaktikanta Das said on Wednesday.

Addressing the industry at the Global Fintech Fest here, Das said fintech players need to evolve industry-best practices to avoid misselling, stress on ethical practices, pricing transparency and take care of privacy and data protection concerns.

Be responsive

Fintech players should themselves ensure responsible digital innovations. The RBI will continue to drive the necessary regulatory and other policy measures to promote a vibrant and responsive fintech ecosystem. —Shaktikanta Das, RBI Governor

“I would like to use this opportunity to urge and encourage the fintechs to establish a Self Regulatory Organisation (SRO) themselves,” he said and assured all help from the Reserve Bank of India (RBI) for the process.

The fintech players should form the SRO at the earliest, Das said and hoped that such a platform will be ready at least by the next edition of the yearly event.

Stating that other industries also have SROs, Das said forming an SRO will help the players to voice their concerns.

He also said that having the SRO will reduce the burden of regulating a dynamic sector off the RBI’s shoulders.

Das said regulators play a critical role in addressing arbitrage, ensuring compliance with existing laws, and adopting regulations as per technological advancements.

Further, he asked the fintech players — most of them startups — to avoid the “relentless drive for valuations” and profits, and asked them to focus on customer centricity.