5 days ago
First RegTech Code as Industry Pushes for Self-Regulation
The fintech industry has taken a significant step toward standardising regulatory technology practices with the launch of its first RegTech Code of Conduct by the Fintech Association for Consumer Empowerment (FACE), the RBI-recognised self-regulatory organisation for the fintech sector.
The code sets out a framework for ethical, secure, and transparent use of RegTech, targeting improved governance, accountability, and alignment with regulators.
The voluntary code applies to FACE's RegTech members but is open to adoption across the wider industry. It follows the creation of a dedicated RegTech Forum earlier this year, which brought member firms together to draft sector-specific norms. The move comes amid rapid adoption of technology in compliance functions, raising concerns around data protection, AI ethics, and auditability.
The Code lays down broad principles in seven areas: regulatory engagement, partnership governance, auditability, ethical conduct, data protection, responsible AI use, and grievance redressal. It encourages transparent communication with financial regulators, thorough due diligence of partners, and the creation of audit trails to monitor service levels. Companies are expected to adopt strong internal controls, such as whistleblower policies, and comply with India's Digital Personal Data Protection Rules, 2025.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
You Won't Believe the Price of These Dubai Apartments
Binghatti Developers FZE
Get Offer
Undo
It also recommends certifications like ISO 27001 and SOC 2.
Firms developing AI tools are required to document model validations to ensure fairness, explainability, and accountability. They must also maintain multi-channel grievance redressal systems and report major incidents, including data breaches, to authorities.
'This initiative is a signal of maturity and intent—not just for FACE but for the broader FinTech and RegTech ecosystem,' said FACE CEO Sugandh Saxena. Industry leaders backed the move. Ranjan Reddy, CEO of Bureau, called it 'a crucial and timely initiative,' while Rahul Lakhani of IDFY termed it 'a strategic opportunity.' Signzy's Arpit Ratan said the code reinforces the role of transparency and compliance in building responsible digital infrastructure.
The code is expected to foster greater collaboration between RegTechs and financial institutions and accelerate adoption of secure, AI-powered compliance tools. It is available publicly for industry-wide reference.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
