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Recently, the Governor of the Reserve Bank of India (RBI) has requested fintech organizations to establish a Self-Regulatory Organization (SRO).

Facts About:

• A Self-Regulatory Organization is an independent entity, not affiliated with the government, responsible for formulating and enforcing industry-specific rules and standards that govern the behavior of its member entities.
• The primary objectives are safeguarding customers' interests and fostering a culture of ethics, fairness, and professionalism within the industry.

Key Functions of an SRO:

• Facilitating Communication: A recognized SRO serves as a vital bridge for communication between its members and the Reserve Bank of India (RBI).

                        This ensures a seamless flow of information and feedback.

• Setting Standards: SROs play a pivotal role in establishing and upholding minimum benchmarks and standards.

                        This helps in cultivating professional and ethical conduct among their member entities.

• Education and Awareness: SROs contribute to enhancing industry expertise by providing training to the staff of their members and other relevant stakeholders.

                        They also organize awareness programs to disseminate knowledge.

• Grievance Resolution: An important function of an SRO is to create a uniform framework for addressing grievances and managing disputes across its member organizations, promoting fairness and transparency.