RBI recognises SRPA as self-regulatory body for payment system operators

The RBI has recognised the Self-Regulated PSO Association (SRPA) as an SRO for payment system operators, marking a key step in strengthening oversight and governance in digital payments

The Reserve Bank of India (RBI) on Tuesday recognised the Self-Regulated PSO Association (SRPA) as a self-regulatory body for the payment system operators (PSO) sector.

  At present, members of the SRPA include Infibeam Avenues (CC Avenue), BillDesk, Razorpay, PhonePe, CRED, Mobikwik, Mswipe, Euronet, Spice Money, Payworld, Unimoni, Open, In Solutions Global, Payglocal, Zokudo, SabPaisa, OxyMoney, and Concerto Software & Systems.

 

The body said more PSOs have initiated their membership process and are expected to join the association after formal approval from the RBI. PSOs are entities authorised by the RBI to set up, operate, and manage payment systems in the country. These systems enable the transfer of funds between individuals, businesses, and financial institutions through various modes such as cards, wallets, and digital payment platforms.

  Why did RBI grant SRO status to SRPA?

 

“An application was received from the 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,” the RBI said.

 

An SRO is a non-governmental organisation that sets and enforces rules and standards relating to the conduct of member entities in the industry, with the aim of protecting consumers and promoting ethical and professional standards.

 

What are the other sectors with recognised SROs?

 

Previously, the RBI granted SRO status to the Fintech Association for Consumer Empowerment (FACE) in the fintech space and the Finance Industry Development Council (FIDC) in the non-banking financial company (NBFC) sector. Sa-Dhan and MFIN operate as SROs for the microfinance industry, while the Fixed Income Money Market and Derivatives Association of India (FIMMDA) serves as the SRO for financial markets.

 

What will be SRPA’s focus as an SRO?

 

“We shall endeavour to play a pivotal role in aligning our members with regulatory priorities. This involves advocating for necessary changes and promoting an alliance and culture of compacting as a crucial conduit between industry players and the RBI,” said Vishwas Patel, director, SRPA.

 

The SRPA said it will operationalise its governance, compliance, and supervisory mechanisms in alignment with the RBI’s framework.

 

“SRPA is committed to working hand in hand with the regulator and industry participants to shape a payments landscape that is not only safe and inclusive but also globally benchmarked in excellence,” said Srinivasu MN, director, SRPA and founder, BillDesk.

  How does this decision reflect India’s expanding digital payments ecosystem?

 

The approval for an SRO in the PSO space comes at a time when digital payments in India have grown multifold, driven by the rapid adoption of the Unified Payments Interface (UPI).

 

UPI currently has over 450 million registered users in India and recorded transactions worth Rs 27.28 trillion across 20.7 billion payments in October.