Fintechs take steps towards self-regulation after RBI push

Days after RBI governor Shakitkanta Das gave the fintech industry a year to set up a self-regulatory organisation, the Fintech Association for Consumer Empowerment (FACE) adopted a new code of conduct for digital lenders to establish itself as an SRO.

FACE has dozens of digital lenders as its members, including players like Fibe, Kissht, LoanTap, Cashe, KreditBee, Paynearby, and Paisabazaar. At the association's AGM on Friday, Naveen Kukreja, founder & CEO of PaisaBazaar, and Ashish Goyal, founder & CFO of Fibe, were elected member directors.

According to Sugandh Saxena, CEO of FACE, the association had applied to RBI last year for recognition as an SRO. Since then, RBI has released digital lending guidelines, mentioning that it will issue separate guidelines for an SRO. "Recognition from RBI is very important. We would have much more credibility and a larger number of members. While it would be super helpful, it does not stop us from doing the right thing for the industry in the meantime," said Saxena.

Explaining the rationale for the new code of conduct, Saxena said that since the organisation was formed three years ago, guidelines for digital lending have emerged - and any code of conduct must align with them.