The Reserve Bank of India (RBI) has approved the Self-Regulated PSO Association’s (SRPA) application to serve as a Self-Regulatory Organisation (SRO) for Payment Systems Operators (PSOs).
“An application was received from the Self-Regulated PSO Association seeking to serve as an SRO for PSOs. The application has been duly considered, and it has been decided to recognise SRPA as an SRO for PSOs,” the RBI said in a statement.
SRPA represents several major digital payment operators, including Infibeam Avenues (CC Avenue), BillDesk, Razorpay, PhonePe, CRED, Mobikwik, Mswipe, Euronet, Spice Money, OPEN, among others. With the RBI designating SRPA as an SRO, several other PSOs are also expected to join the association, further expanding its reach and representation across the digital payments ecosystem.
The approval comes on the heels of the RBI’s Framework for Recognition of SRO for PSOs issued in October 2020, and the Omnibus Framework for Recognition of SROs for Regulated Entities of the Reserve Bank released in March 2024.
This move forms part of the central bank’s broader effort to encourage self-governance in India’s digital payments space.
The omnibus framework lays down general guidelines on governance, eligibility criteria, responsibilities, objectives, and application procedures that apply to any SRO seeking recognition from the central bank.
RBI has also indicated that additional sector-specific rules, such as those concerning the number of SROs or membership structures, will be issued by its departments when necessary.
Role of SRPA as Industry Representative
With this new status, SRPA will act as a bridge between the RBI and companies operating within India’s payments ecosystem, such as PhonePe, Paytm, Razorpay, and Mastercard.
The self-regulatory association will be responsible for framing and implementing a code of conduct for its members and laying out self-regulatory principles on data protection, compliance, and consumer safeguards.
Other duties include facilitating a grievance redressal and dispute resolution framework, ensuring ethical behaviour among members, and serving as the sector’s collective voice before regulatory authorities and government agencies.
Although final regulatory authority remains with the RBI, operational supervision and disciplinary coordination aimed at fostering a transparent payments sector will now fall under SRPA’s purview.
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Other Sector-Specific SROs
The central bank’s decision follows the recognition of other sector-specific SROs. For instance, last month, the RBI designated the Finance Industry Development Council (FIDC) as an SRO for the Non-Banking Financial Companies (NBFCs) sector.
In August last year, the RBI approved the Fintech Association for Consumer Empowerment’s (FACE) bid to act as an SRO for the fintech sector. Its members include Khatabook, CASHe, Cars24, Bajaj Finserv, Angel One, Groww, InCred, and Pine…
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