In a sector where speed often outruns scrutiny, India’s fintech industry is pressing pauseand taking stock.

Last week, the Fintech Association for Consumer Empowerment (FACE) introduced the country’s first-ever RegTech Code of Conduct, marking a crucial step toward building ethical guardrails for the technologies that power modern financial services.

As financial firms increasingly rely on AI-driven compliance tools, real-time credit scoring, and automated fraud detection, the rise of Regulatory Technology (RegTech) has become indispensable. But with growing power comes growing responsibility, and that’s exactly what this new code seeks to address.

More than just a technical standard, it’s a signal that India’s digital finance ecosystem is ready to self-regulate, self-reflect, and scale responsibly.

In a pivotal moment for India’s fast-evolving fintech sector, the Fintech Association for Consumer Empowerment (FACE) has unveiled the country’s first formal Code of Conduct for Regulatory Technology (RegTech) firms. The move reflects a growing consensus that as digital finance becomes deeply embedded in India’s financial infrastructure, compliance must evolve from reactive enforcement to proactive design.

Once a niche enabler, RegTechhas rapidly become integral to the system through which financial institutions onboard customers, detect fraud, underwrite loans, and meet regulatory obligations. But with this scale and influence comes heightened scrutiny, particularly around data governance, algorithmic transparency, and consumer protection.

The newly launched code marks a foundational step toward self-regulation, offering a principles-based framework to guide how RegTech companies operate, innovate, and interface with both regulated entities and end-users. It is the clearest sign yet that India’s fintech ecosystem is transitioning from experimentation to institutionalization, where trust, accountability, and ethical automation take center stage.

(The writer is a seasoned Banker and Mortgage Specialist working for India’s largest loan distributor company and covers financial policy, digital services, and public infrastructure in India.)