India’s RBI grants self-regulatory status to SRPA for PSOs

Core Viewpoint - The Reserve Bank of India (RBI) has recognized the Self-Regulated PSO Association (SRPA) as a self-regulatory organization (SRO) for payment system operators (PSOs), marking a significant step towards enhancing self-governance in India's digital payments sector [1][5]. Group 1: Regulatory Framework - The RBI's recognition of SRPA builds on previous regulatory guidelines introduced in October 2020 and the omnibus framework established in March 2024, which outlines governance principles and eligibility requirements for SROs [1][2]. - The omnibus framework will allow for the issuance of additional sector-specific rules by RBI departments as needed, including those related to the number of SROs and membership structures [2]. Group 2: Responsibilities of SRPA - With its new status, SRPA will serve as the primary liaison between RBI and companies in India's payments ecosystem, including major players like PhonePe, Paytm, Razorpay, and Mastercard [3]. - SRPA will be tasked with establishing and monitoring industry standards related to data protection, compliance, and consumer safeguards, as well as facilitating grievance resolution and promoting ethical behavior among its members [4]. - Although the RBI retains ultimate regulatory authority, SRPA will oversee operational supervision and disciplinary coordination to support a transparent payments sector [4]. Group 3: Industry Impact - The RBI views the establishment of SRPA as a crucial advancement in self-governance within the digital payments landscape, following the recognition of other sector-specific SROs like the Finance Industry Development Council (FIDC) and the FinTech Association for Consumer Empowerment (FACE) [5]. - In a related development, NPCI International Payments Limited (NIPL) has formed a collaboration with Bahrain fintech operator BENEFIT, indicating ongoing growth and partnerships within the payments industry [6].