RBI recognizes Self-Regulated PSO Association as SRO for Payment System Operators

Reserve Bank of India

The Reserve Bank of India (RBI) on November 11 recognized Self-Regulated PSO Association (SRPA) as a Self-Regulatory Organisation for payment system operators.

“An application was received from ‘Self-Regulated PSO Association (SRPA)’ 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,” RBI said in a release.

On March 21, 2024, the central bank had finalised the Omnibus Framework for recognising Self-Regulatory Organisations (SRO) for its Regulated Entities.

The omnibus framework contains broad parameters such as objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition, which will be common for any SRO proposed to be recognized by the Reserve Bank.

Other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately by the respective departments of the Reserve Bank, wherever a sectoral SRO is intended to be set up, the release said.

The SRO is expected to promote a culture of compliance among its members by encouraging progressive practices and conventions. Special attention must be given to extending guidance and support, particularly to smaller entities within the sector, and sharing best practices aligned with statutory and regulatory policies.

Further, the SRO will act as a collective voice of members to engage with the Reserve Bank, government authorities or other regulatory and statutory bodies.

The SRO will collect and share relevant sectoral information to the Reserve Bank to aid in policymaking, and encourage a culture of research and development within the sector to encourage innovation while ensuring highest standards of compliance and self-governance.