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The Fintech Association for Consumer Empowerment (FACE) adopted an upgraded code of conduct to strengthen customer protection measures among the association's members and the fintech digital lending industry.
FACE said the new code has seven principles. These include inclusivity, appropriateness, transparency, privacy, promotion, recovery, and redressal.
"The regulators are clearly encouraging the creation of a Self-Regulatory Organisation (SRO). Our revised code, within the regulatory framework, is an ambitious self-regulation standard committed to advancing consumers' interests and safeguarding them against harm and risks in a fast-evolving market," said Ram Rastogi, Chairman at FACE.
FACE is an industry association for digital lenders that was set up as a non-profit body in September 2020.
It said the association has a two-layer framework for member companies to take responsibility to comply with the code of conduct and agree to scrutiny by FACE for compliance reasons as a way to ensure enforcement.
Moreover, an enforcement committee will provide guidance on how members adhere to the code. This includes dealing with specific non-adherence within an approved framework and appellate mechanism.
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The association applied to become an SRO with the Reserve Bank of India (RBI) in January last year.
"FACE renewed its new code of conduct with an unwavering commitment to prioritise customer protection and uphold the highest standards of self-regulation. In an era where digital lending plays an increasingly vital role in people's lives, the promise and long-term sustainability of digital lending hinges on customer trust and confidence in it to meet life goals and improve their financial situation," said Akshay Mehrotra, co-founder and chief executive officer at digital lending start-up Fibe, and a member of FACE.
