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Framework for Self-Regulatory Organisations in the FinTech Sector (Updated on September 10, 2026)

Reserve Bank of India (RBI) has released the framework for self-regulatory organisations in the FinTech sector.

What are FinTechs?

For the purpose of membership of an Self-Regulatory Organisations for FinTech Sector (SRO-FT), FinTechs may be defined as entities that provide technological solutions for delivery of financial products and services to businesses and consumers or encompass regulatory and supervisory compliance in partnership with traditional financial institutions or otherwise. 

What is the need of Self-Regulatory Organisations for FinTech Sector?

FinTechs play a pivotal role in redefining financial services by saving time, enhancing access, and lowering costs. While the FinTechs bring various innovations, the FinTech sector also raises concerns relating to customer protection, data privacy, cyber security, grievance handling, internal governance, financial system integrity, etc.

A judicious balance between maximising the creative potential of FinTechs, while minimising the idiosyncratic risks they pose to the financial system, is desirable. The oversight framework should be activity-based, risk-based, scale-based and phased-in as well. Self-regulation within the FinTech sector could be one way of achieving this delicate balance.

What shall be the characteristics of Self-Regulatory Organisations for FinTech Sector?

The SRO-FT should operate under the oversight of RBI. The SRO-FT should have, inter-alia, the following characteristics –

  • True Representation of the FinTech Sector – The SRO-FT should derive its strength from its membership, ensuring that it is truly representative of the FinTech sector, including FinTechs that are currently regulated by RBI (e.g., NBFC-Account Aggregators, NBFC-Peer to Peer Lending Platforms, etc.) but excluding banks. Through comprehensive membership agreements that encompass a broad spectrum of industry players, the SRO-FT should gain the legitimacy and credibility to not only frame baseline standards and rules of conduct codes, but also effectively monitor and enforce them. While it is likely that FinTechs could have membership of more than one SRO, the FinTech entities are encouraged to participate in at least one SRO.
  • Development-oriented – The SRO-FT should be development-oriented, actively contributing to the growth and evolution of the industry. This involves prescribing minimum eligibility criteria for its members, providing specialised knowledge and expertise, offering guidance, and contributing to capacity-building through training programs.
  • Independence from Influence – To maintain credibility, the SRO-FT should operate independently, free from the influence of any single member or group of members.
  • Legitimate Arbiter of Disputes – Members should perceive the SRO-FT as a legitimate arbiter of disputes. This would require a transparent and fair resolution mechanism for disputes arising among members that instil confidence in the FinTech sector.
  • Encouraging Members to Subscribe to Regulatory Expectations – The SRO-FT should be capable of motivating its members to align with regulatory priorities. This should involve facilitating communication between industry players and RBI, advocating for necessary changes, and promoting a culture of compliance. The codes / standards / rules set for adoption by its members shall not be a substitute to the direct prescribed regulatory framework for FinTechs, if any. The SRO-FT, as its duty towards ensuring compliance, should have adequate powers to investigate and take disciplinary action against its members for non-adherence to codes / standards / rules.
  • Repository of Information – As a repository of information, the SRO-FT should collect, analyse, and disseminate relevant data pertaining to the activities of its members.

What shall be the eligibility criteria for SRO-FT?

  • The applicant should be set up as a not-for-profit company registered under Section 8 of the Companies Act, 2013. 
  • The shareholding of the SRO should be sufficiently diversified, and no entity should hold 10% or more of its paid-up share capital, either singly or acting in concert.
  • The Memorandum of Association (MoA) should explicitly state the operation as an SRO-FT as its primary objective.
  • The applicant should have a minimum net worth of ₹2 crore within 1 year after recognition as an SRO-FT by RBI, or before commencement of operations as an SRO-FT, whichever is earlier.
  • The SRO-FT should demonstrate the capability of establishing the necessary infrastructure to fulfil the responsibility of SRO-FT effectively, and consistently. 
  • The SRO-FT should put in place systems for managing ‘user harm’ instances that come to its notice or are referred to it by RBI or any other stakeholder. The user harm instances may include fraud, mis-selling, unfair practices, unauthorised transactions, or any other form of misconduct that harm consumers of financial services.
  • The SRO-FT should not set up entities / offices overseas without the prior approval of RBI.

What shall be the criteria for membership of SRO-FT?

  • The applicant SRO-FT should represent the FinTech sector with membership across entities of all size, stage and activities.
  • If representation is inadequate at the time of application, a roadmap should be included for achieving this within a reasonable timeline. Failure to demonstrate or attain comprehensive membership would result in refusal or revocation of recognition.
  • Membership of the SRO-FT should comprise of members who are FinTechs, and membership should be voluntary. 
  • The SRO-FT should be an entity domiciled / registered in India.
  • The SRO-FT could have FinTechs domiciled outside India as members.
  • The membership fee structure developed by the SRO-FT should be reasonable, and non-discriminatory. While membership fees may vary or be differentiated, based on size, intent, capability, etc., it should be ensured that the membership character remains non-discriminatory, i.e., all FinTechs irrespective of membership fees enjoy equal rights and representation.
  • The SRO-FT should derive authority through the membership agreements to set rules, standards, codes of conduct, etc., for its members.
  • The SRO-FT would be empowered to bar / remove any of the FinTech entities to be its member for a period as specified by it, or for eternity if the circumstances so require.
  • FinTechs would be encouraged by RBI to become member of a recognised SRO-FT.

What shall be the criteria for the Board of SRO-FT?

  • The Board of Directors (BoD) and Key Managerial Personnel (KMP) should possess professional competence and a reputation for fairness and integrity.
  • The Board should put in place a framework for the ongoing monitoring of 'fit and proper' status of its directors. Any change in the directorship or adverse change in its fit and proper status, should be immediately reported to RBI.
  • At least 1/3rd of members in the Board, including the chairperson, should be independent, and without any active association with a FinTech entity. Majority of non-independent directors are to be representative of FinTechs that are currently not directly regulated.
  • RBI shall, if required, remove any member of the board and / or management of the SRO-FT, if felt necessary. 
  • RBI would, if it deems necessary, nominate / depute Observers on the Board of the SRO-FT.

What shall be the responsibilities of SRO-FT towards RBI?

  • The SRO-FT should act as the collective voice of its members in engagements with RBI. In such engagements, it would be expected that the SRO-FT functions beyond the self-interest of specific members and addresses larger concerns of the FinTech sector. Also, while acting as the industry association, the SRO-FT would be expected to ensure equitable and transparent treatment for all its members.
  • The SRO-FT would be obligated to regularly update RBI on the developments in the sector and notify RBI of any major violation by its members regarding statutory or regulatory requirements or systemic issues to enable RBI to initiate timely action.
  • The SRO-FT should collect relevant and up to date sectoral information and share the same with RBI to aid in policy making. The SRO-FT should, where required, co-ordinate the introduction of new products within the regulatory framework set by RBI.
  • The SRO-FT should consult RBI in developing and updating the taxonomy for FinTechs.
  • The SRO-FT should carry out any assigned tasks from RBI, review referred proposals or suggestions, and supply requested data / information as directed by RBI.
  • The SRO-FT would be required to submit its Annual Report and / or other information to RBI. Additionally, the SRO-FT should submit periodic returns as may be prescribed by RBI.
  • The SRO-FT would be invited for periodic interactions with RBI and be expected to adopt a holistic perspective on the FinTech sector when providing its views, inputs, or suggestions.
  • RBI reserves the right to inspect the books of the SRO-FT or arrange to have the books audited by an audit firm. The expenses of such inspection would be borne by the SRO-FT.
  • The SRO-FT should discharge such other functions and abide by such other directions as specified by RBI, from time to time.
  • The SRO-FT should guide / facilitate RBI on the extent, scope, and manner of regulation of entities in the FinTech sector.
  • The SRO-FT should facilitate collection of market intelligence inputs and feed them to RBI on an appropriate basis at periodic intervals and / or at urgent intervals, as may be necessitated upon.

How shall the application of SRO-FT be processed?

  • Any representative organisation for FinTechs may apply for recognition as an SRO-FT. 
  • Membership in the SRO-FT should be primarily from FinTechs that are currently not regulated by any financial sector regulator. Membership may also be open to Regulated Entities (other than banks)
  • The number of SRO-FTs to be recognised would be considered based on the number and nature of applications received.
  • Where the applicant is deemed suitable, RBI would issue a “Letter of Recognition” to the SRO-FT.

Which entity has been recognised as SRO-FT?

The following entities have been recognised as SRO-FT –

  • Fintech Association for Consumer Empowerment (FACE) (Updated as on September 01, 2024)
  • Unified Fintech Forum (UFF) (Updated as on September 10, 2026)


References

Reserve Bank of India. (2024, May 30). Framework for Recognising Self-Regulatory Organisation(s) for FinTech Sector. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58000

Reserve Bank of India. (2024, May 30). Framework for Self-Regulatory Organisation(s) in the FinTech Sector. Retrieved from https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1263

Reserve Bank of India. (2024, August 28). Recognition of Self-Regulatory Organisation(s) in the FinTech Sector (SRO-FT). Retrieved from https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58586

Reserve Bank of India. (2026, September 10). Recognition of Self-Regulatory Organisation in the FinTech Sector (SRO-FT). Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63566


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