RBI Governor Shaktikanta Das has called upon fintech entities to create a Self-Regulatory Organization (SRO), a non-governmental body responsible for setting and enforcing industry-specific rules and standards. The primary aim of an SRO is to safeguard consumers and promote ethical conduct, equality, and professionalism within the sector. SROs collaborate with industry stakeholders to formulate regulations, ensuring a broader focus that extends beyond individual industry interests. Entities interested in SRO recognition must apply to the RBI, which will grant recognition to suitable candidates. An SRO serves as a vital channel between its members and the RBI, fostering ethical market behavior and providing training and dispute resolution.
Facts/Terms for UPSC Prelims
- Self-Regulatory Organization (SRO): A non-governmental entity responsible for establishing and enforcing industry-specific rules and standards to protect consumers and promote ethical conduct.
- Regulations and Standards: Rules and guidelines governing the behavior and practices of industry participants to ensure fair competition and consumer protection.
- Grievance Redressal: A formal mechanism for addressing complaints and disputes within an organization or industry to maintain transparency and resolve issues.
- Ethical Practices: Conducting business with integrity and adherence to moral principles, fostering trust and confidence in the industry.