RBI Governor urges fintech players to set up self regulatory organisation

Reserve Bank of India Governor Shaktikanta Das on Wednesday urged fintech players to set up a Self Regulatory Organisation (SRO) at the earliest for an orderly growth of the industry.

"Fintech players need to evolve industry best practices, privacy and data protection norms in sync with the law of the land," he said, adding that they can also set standards on issues like misselling, promoting ethical business practices and transparency in pricing.

Speaking at the Global Fintech Fest here, Das said that good governance will be key to durable and long term success of any company, and in particular, the fintech players.

As per projections, the fintech sector revenues are set to touch USD 200 billion by 2030, he added.

Governor also said that the Reserve Bank is mulling handing over the newly-launched frictionless credit platform to a private company as it did with the National Payments Corporation of India (NPCI).

Under the frictionless platform initiative, banks are extending loans like the Kisan credit cards in under 10 minutes.

Speaking at the Global Fintech Fest here, Das said the Reserve Bank of India (RBI) led the initiative and is involved on a day-to-day basis with it as that requires multi-agency coordination like accessing land records from states' revenue departments and satellite data.

" broadly, the idea is eventually we want to make it an open architecture. We do the open platform, we will gradually withdraw and hand it over to a private company like RBI did in the case of NPCI and it will be an open architecture on which any bank or NBFC can onboard," Das said.

According to Das, the banks and non-bank finance companies can continue with their lending activities even after RBI hands over the platform.