Comment on RBI’s framework for Fintech SRO

Vishal Sharma, Cofounder & CEO, AdvaRisk (India’s first and only end-to-end RiskTech for collateral based lending) – “The oversight and enforcement clause, which includes counselling, cautioning, reprimanding, and expelling members, will help maintain integrity in the fintech ecosystem and enhance the SRO-FT’s effectiveness. This approach ensures uniformity without stifling innovation and growth, protects consumers, and enhances the fintech sector’s credibility. Additionally, it fosters trust within the banking fraternity, encouraging collaboration with SRO-listed companies. The temporary or permanent removal of non-compliant entities ensures that only committed and trustworthy members remain, further strengthening the ecosystem.”

Ashish Goyal, Cofounder & CFO, Fibe (one of India’s leading consumer lending apps) – “This positive initiative by RBI is pivotal to fostering a balanced, innovative, and responsible fintech ecosystem. Being industry-led and built on a ‘representative’ structure will allow the self-regulatory organisation (SRO) to understand the nuances of the ecosystem much better and help in leveraging the collective expertise and experience of the members. This will lead to better and more feasible solutions for the industry players. It will also result in the development of standards that are practical, adaptive, and widely accepted within the fintech community. Overall SRO will enhance communication between the regulator and the industry manifold thereby ensuring continuous and responsible innovation that is a win-win for both the industry and customers.”