Mumbai: Fintech Association for Consumer Empowerment (Face) – Industrial Agency with members who include leading startup companies – have been applied to the Bank of India (RBI) reserves to take the role of self-regulation organizations (SRO) in the digital loan industry.
According to the face, its member companies serve more than half the volume of the consumer loan market in India.
This organization has worked with regulators, stakeholders, industrial players, and other consumer groups on steps to promote consumer empowerment, including financial literacy and consumer protection.
Members of the face come together after a digital loan faces a counter-attack regulation after, what describes it as, “Fringe Elements hurt consumer confidence in the system”.
This application appears after RBI is looking for advice from industrial groups to enforce regulations for digital loan platforms to curb illegal applications.
“We are dealing with working with RBI and all official stakeholders to promote responsible loans, which will enforce ethical loan practices, data security, cyber security, consumer privacy, and to get rid of Predator Lenders,” said Ram Rastogi, a member of the Board of Tata Manage, face.
“With our expertise and a market that can be addressed together, we believe the face is ready to take the duties of the formal self-regulatory body, which can promote and improve the practice and streamline the sector, with the guidance of the RBI,” Rastogi added.
The face was formed as a non-profit industry association in September 2020 to encourage ethical loan practices among the Indian Fintech sector and establish leadership of thought in consumer finance.
According to its website, members include early, Kissht, Lootap, Cashe, Kreditbee, Paysense, and Credavenue.