26 March 2025, Bengaluru: Founders of leading fintech startups, including Jupiter and Fi, along with Lendingkart, have come together to establish a new umbrella industry organization with the objective of securing a self-regulatory organization (SRO) license from the Reserve Bank of India (RBI).
The newly formed entity is an offshoot of the Fintech Convergence Council (FCC), a committee under the Internet and Mobile Association of India (IAMAI). It aims to act as a representative body for the diverse fintech industry, ensuring compliance with RBI regulations and facilitating better coordination between startups and regulatory authorities.
Industry veteran Sai Sudha Chandrasekaran has been appointed as the chief executive officer of this new organization. Chandrasekaran previously worked with PwC and the Ministry of Finance, specializing in investment promotion and policy-making.
A Unified Fintech Voice
The formation of the fintech SRO is driven by the need to create a structured and compliant ecosystem in India’s rapidly growing financial technology sector. The RBI has been pushing for an SRO to oversee the industry’s best practices and compliance, ensuring consumer protection while fostering innovation.
The organization has brought together major fintech players operating in diverse domains, including lending, wealth management, insurance, and decentralized finance. By including representatives from various fintech segments, the entity aims to present itself as the most comprehensive and representative body in the sector.
According to sources, one of the key criteria the RBI emphasized in the selection process was inclusivity and representation across different fintech verticals. To meet this requirement, the new body has on board industry stalwarts such as Jitendra Gupta, founder of Jupiter; Harshvardhan Lunia, founder of Lendingkart; Anurag Sinha, co-founder of OneCard; and fintech startup investor Ankit Ratan.
Regulatory Expectations
The RBI had previously announced at the Global Fintech Festival that it was seeking an SRO to act as a watchdog and regulatory intermediary between fintech firms and the central bank. This announcement was aligned with the RBI’s broader initiative to bring greater accountability and transparency to the sector.
The need for an SRO in fintech has grown in recent years due to increasing concerns over regulatory compliance, data privacy, and customer protection. The central bank has been cautious in regulating the digital lending space, particularly in the wake of rising cases of fraud and malpractice in the industry.
Industry Reactions and Next Steps
Industry experts believe that establishing a self-regulatory organization will help build trust with regulatory bodies and enhance investor confidence in the Indian fintech ecosystem. By setting standardized guidelines and best practices, the SRO can ensure a balanced approach between innovation and compliance.
The next step for the newly formed entity is to seek formal recognition from the RBI. If approved, it will serve as a key regulatory interface for fintech firms, ensuring adherence to established norms and mitigating potential risks associated with digital financial services.
As fintech continues to play a crucial role in India’s digital economy, this initiative marks a significant milestone in the industry’s evolution. Whether this organization secures RBI’s approval remains to be seen, but its formation underscores the growing need for regulatory structure in the fintech space.
Source: Pratik Bhakta, The Economic Times
