Regulating fintech

RBI draft guidelines kick off the process

The Reserve Bank of India’s (RBI’s) draft norms for self-regulatory organisations for the financial technology sector (SRO-FT) broadly define the ideal qualities these bodies should possess, but they leave some room for flexibility within the contours. The draft framework notes, to maintain credibility, an SRO-FT should operate independently — remain free from the influence of a single member or a group of members, avoid conflicts of interest, and ensure unbiased oversight of its members. Independence would enhance an SRO-FT’s reputation as a neutral and reliable entity, which is essential for gaining the trust of industry participants and regulators. It is