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Module: General Practice

Q106: Regarding the recognition of Self-Regulatory Organizations for the FinTech Sector (SRO-FT) by the RBI, which of the following statements is INCORRECT?

A
The SRO-FT must be set up as a Section 8 (Not-for-Profit) company.
B
The SRO-FT must have a minimum net worth of ₹500 Crore.
C
At least one-third of the Board of Directors must be independent members.
D
The SRO-FT is expected to develop a code of conduct and set baseline standards for the industry.
✅ Correct Answer: B
🎯 Quick Answer:
Option B is incorrect.
Concept Definition: SRO-FTs (like FACE - Fintech Association for Consumer Empowerment) are industry bodies recognized by the RBI to police their own members.
Financial Requirement Correction: The SRO-FT does not need a ₹500 Crore net worth.
This figure is typically associated with "umbrella entities" or large payment systems.
The SRO needs sufficient net worth and infrastructure to discharge its duties, but there is no such massive capital entry barrier defined in the framework.
Other Options: Section 8: Correct.
It must be not-for-profit to ensure it serves the industry, not shareholders.
Independence: Correct.
Independent directors prevent dominant players from hijacking the rules.
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