Fintech Founders Seek RBI Licence for New SRO
Why in the news
Top fintech founders formed an industry body to seek RBI recognition as an SRO amid tighter scrutiny.
Key facts
- Founding firms: Jupiter, Fi, Lendingkart, OneCard, Signzy.
- Linked to the Fintech Convergence Council, part of IAMAI.
- CEO: Sai Sudha Chandrasekaran, formerly at Invest India (Ministry of Commerce).
- Goal: obtain an SRO licence from RBI.
RBI’s stance
| Point | Detail |
|---|---|
| Encouragement | Wants a broad-based SRO voicing diverse fintechs |
| First fintech SRO | FACE (Fintech Association of Consumer Empowerment), recognised last year |
| Other contenders | FCC and Digital Lenders’ Association of India |
| Context | Rising RBI scrutiny of fintech operations |
Significance
- Industry-led governance, consumer protection and a united voice before regulators.
Exam angle
- SRO = self-regulatory organisation.
- IAMAI = Internet and Mobile Association of India.
- First fintech SRO: FACE.