The Reserve Bank of India on 18th August 2020 has published the draft framework for establishment of a Self-Regulatory Organisation (SRO) that will be responsible for setting and enforcing rules for Payment Systems Operators (PSOs).
The Self-Regulatory Organisation is a non-governmental organization that sets and enforces rules and standards relating to the conduct of entities in the industry with the aim of protecting the customer and promoting ethics, equality, and professionalism.
The SRO will serve as a two-way communication channel between the PSOs and the central bank, and work towards establishing minimum benchmarks and standards in the payments space, apart from helping disciplined behaviour by members.
The recognized SRO, invited for periodical interactions with the Reserve Bank, shall reasonably be expected to look at the larger picture of the segment / industry before offering its views/inputs/suggestions. Such an SRO shall be expected to address concerns beyond the self-interest of its membership, viz. to protect customers, participants and other stakeholders in the ecosystem. It shall play an important role in supplementing and complementing the present regulatory/supervisory arrangements.
The RBI will accept public comments on the draft framework till 15th September 2020.
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