Under the oversight of the RBI, SRO-FT is established as an industry-led entity to enforce regulatory standards, ethical conduct, ensure market integrity and resolve disputes. The overall idea is to foster transparency and accountability amongst the member fintechs.

Ideally, it should collect data and share it with member organisations.

SRO-FT balances the creative potential of fintech and the risks they pose to the financial system. Fintechs can rapidly adapt to technological advancements and evolving market dynamics.

The first SRO-FT is FACE or Fintech Association for Consumer Environment. It is an association of fintech lenders. It has 50 members. It has been recognized by the RBI on August 28, 2024. It promotes responsible lending and borrowing.

SRO-FT formulates standards — code of conduct, benchmarks, documentation, ad guidelines, baseline governance standards, data protection, and statutory compliance.

It monitors the activities of the members and takes actions such as counselling, cautioning and reprimanding. It can impose fines also. It can expel members. It can bar fintechs from membership — temporarily or permanently.