Context:
Founders of top fintech startups Jupiter, Fi, Lendingkart, OneCard, and Signzy — have come together to form a new industry body. The objective is to secure a self-regulatory organisation (SRO) licence from the Reserve Bank of India (RBI).
- The new body is an offshoot of the Fintech Convergence Council (FCC) under IAMAI (Internet and Mobile Association of India).
Leadership and Structure
- Sai Sudha Chandrasekaran appointed as CEO of the new organisation.
- Chandrasekaran previously served as Senior Vice President at Invest India, under the Ministry of Commerce.
RBI’s Role and Criteria
- The RBI has encouraged formation of a broad-based SRO representing diverse fintech voices.
- Last year, the RBI recognised FACE (Fintech Association of Consumer Empowerment) as the first fintech SRO.
- FCC and Digital Lenders’ Association of India were other key contenders for SRO recognition.
Regulatory
- The formation of this new body comes at a time of increased regulatory scrutiny by the RBI on fintech operations.
- The RBI has been pushing fintech companies to create an inclusive SRO to ensure industry-level governance and consumer protection.
The collaborative move by leading fintech founders marks a significant step toward industry-led governance. With regulatory oversight tightening, the new SRO aims to align fintech innovation with compliance, representing a unified voice to regulators and stakeholders.
Source: Economic Times
