SRO stands for self-regulatory organization it is a nonprofit organization that regulates banks,

NBFC, fintech sector in behalf of RBI, and SRO a bridge between regulated entities and RBI
as we know there is already many SROs are working today is need of omnibus framework of
regulation so, the answer is to regulate all regulated entities through same rule and to make
more resilient regulation its member and nowadays a number of regulated entities increases
this made more need of making framework and framework aims to foster innovation,
transparency, professionalism, and independence with in the organization to build confidence
in the integrity of the sector they regulate and the framework represent minimum requirement
and recognised SROs are encouraged to develop their best practices.
Moreover, SRO plays a vital role in strengthening the regulatory guidelines of RBI and also
improve the innovative guidelines to the member organization, however, SRO also takescan
feedback or policy making structures that provide member organizations work with more
ethical and best practices in work environment.
Furthermore, SROs have characteristics firstly, aiming to enhance regulatory compliance for
the sectors sustainable development second, development of standards to improve members’
compliance culture third, standardized dispute resolution procedures etc.
How SRO framework solve the problem of fintech sector :
1. Framework provide more resilient , transparent, innovative structure to the member
entities of SROs.
2. It provide monthly and weekly magazine of member entities from that they know the
progress of member entities and made a policy and innovative norms according to
report provide by regulated entities.
3. It can also provide dispute resolution system that resolve the issue of regulated
entities like fintech etc.
4. it informed regulated entities informed of the development in the sector ,it also
informed RBI any violation of compliance by member entities that made more
regulated fintech system.
5. More transparency in the fintech sector.
6. Provide timely regulation instead of cumbersome or delayed because of new guideline
on framework.
7. Framing a customized code of conduct for members based on the nature of their
activities.
8. Developing a code of conduct for responsible advertisement and market standards.
9. Offering a counselling on restrictive and unhealthy practices that could harm sector
growth.
10. Focusing on customer education regarding industry product and services.
SROs are a bridge between member entities and RBI to improve the fintech sector while
before framework there is already a SROs are present for example, Indian bank association,
association of mutual funds etc. that but due to increase in number and work there is need of
sector specific and omnibus framework that provide development idea about technological
advancement, innovative ideas of sector and also provide collective voice in engagement with
RBI also participate in the periodic interaction with RBI and so, SROs are essential part of
financial sector regulation and provide more standardized regulation of regulated entities.