Fintechs seek self-regulatory status from RBI

MUMBAI: The Fintech Association for Consumer Empowerment (FACE) — an industry body with members that include prominent startup firms — has applied to the Reserve Bank of India (RBI) to take on the role of a self-regulatory organisation (SRO) in the digital lending industry.
According to FACE, its member companies cater to more than half of the consumer lending market volumes in India. The organisation is already working with regulators, stakeholders, industry players and other consumer groups on measures to promote consumer empowerment, including financial literacy and consumer protection. FACE members came together after digital lending faced a regulatory backlash in the wake of, what it describes as, “fringe elements hurting consumer trust in the system”.
The application comes after the RBI sought suggestions from industry groups to enforce regulations for digital lending…

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