News | Amitabh Kant Emphasizes Inclusivity and Diversity in Fintech Self-Regulatory Organizations

Amitabh Kant Emphasizes Inclusivity and Diversity in Fintech Self-Regulatory Organizations

News

05 April 2025

2 min read

UBS Forums

326

At the recent Startup Mahakumbh 2025, India's G20 Sherpa, Amitabh Kant, underscored the necessity for fintech self-regulatory organizations (SROs) to embody inclusivity and diversity. He highlighted that the Reserve Bank of India's (RBI) guidelines, which limit any single entity's ownership to 10% of the paid-up capital in an SRO, are designed to prevent dominance by any one entity and to promote broad representation across the fintech sector.

Kant stressed the importance of these measures in safeguarding against regulatory capture, ensuring that the fintech industry operates independently and remains free from undue internal influences. He stated, "We must also ensure close oversight by the RBI, which is essential to prevent regulatory capture and to ensure that the fintech industry operates independently of any undue influence from within."

Foundation (IFF), a proposed SRO aimed at fostering responsible innovation, consumer protection, and regulatory compliance within the fintech industry. The IFF intends to serve as a central body for the fintech ecosystem, encompassing areas such as digital payments, lending, wealthtech, insurtech, regtech, account aggregation, embedded finance, and emerging technologies like DeFi, CBDC, and Web3.

N.S. Viswanathan, former Deputy Governor of the RBI and Non-Executive Chairman of Axis Bank, who will chair the IFF Board, emphasized the educational role of SROs in guiding fintech companies. He noted, "Educating fintechs is a very crucial function of SROs," highlighting their potential to streamline regulatory compliance and enable businesses rather than burden them.

The establishment of the IFF reflects a collaborative effort among fintech leaders, regulatory bodies, and government officials to ceate a robust framework for self-regulation. This initiative aims to balance innovation with accountability, ensuring that India's fintech sector continues to grow in a responsible and inclusive manner.

References: