Fintech industry body seeks regulatory nod to act as SRO

Face member companies account for more than half of the consumer lending market volume in India. The organization said it would work closely with regulators, official stakeholders, industry players and other consumer groups to address the need for proactive consumer empowerment, including financial literacy, consumer protection and the challenge of working with regulators in combating harmful substances. Has been doing. Consumer confidence in the system.

Self-regulatory organizations are non-governmental organizations that set and enforce rules and standards related to the operation of entities in their respective areas. FACE’s application comes at the back of the RBI, in an effort to curb illegal lending apps, seeking suggestions from industry groups to implement regulations for digital lending platforms in the country. According to the RBI, an SRO in the industry would be the most appropriate entity to regulate the ecosystem that would help prevent fraud and exploitation of consumers while instilling good practices among digital lenders and ensuring steady growth of the overall sector.

“At Face, we intend to work with the RBI and all official stakeholders to promote responsible lending, which will maintain ethical lending practices, data security, cyber security, consumer privacy and weed out predatory lenders. With our expertise and collectively addressable market, we believe that FACE is well-positioned to perform the function of a formal self-regulatory body, which can promote and refine practices, Could streamline the sector with guidance,” said Ram Rastogi, member of the Governance Council at Face and a digital payments strategist.