The Reserve Bank of India (RBI) has officially recognised the Unified Fintech Forum (UFF) as the second self-regulatory organisation (SRO) for the fintech sector, nearly two years after the first SRO, the Fintech Association for Consumer Empowerment (FACE), was established. This recognition was announced recently, marking a key regulatory milestone for fintech governance in India, according to economictimes.indiatimes.com.
UFF, which was formerly known as the Digital Lenders Association of India, had been pursuing SRO status for some time. The RBI's recognition formalises UFF's role in overseeing fintech companies and promoting responsible practices within the sector. Governor Malhotra highlighted this development, underscoring the importance of self-regulation in fintech to complement regulatory oversight and foster industry growth, as reported by bfsi.economictimes.indiatimes.com.
The recognition of UFF as the second SRO follows the precedent set by FACE, which was the first fintech self-regulatory body recognised by the RBI. This move reflects the growing complexity and scale of the fintech ecosystem in India, where multiple bodies are now tasked with ensuring compliance and consumer protection. The establishment of multiple SROs aligns with global trends in fintech regulation and aims to enhance trust and transparency in digital financial services.
The RBI's recognition of UFF was confirmed this week, positioning it alongside FACE as a key player in fintech self-regulation. This dual-SRO framework is expected to support the RBI's broader objective of strengthening the fintech sector's regulatory environment while encouraging innovation. The RBI's official announcement was published on economictimes.indiatimes.com on September 10.