Reserve Bank of India has finalized the guidelines for setting up self-regulatory Organizations (SROs) for digital payments in India.
- The proposed body will be a not-for-profit entity, akin to industry associations like Indian Banks Association (IBA) or Mfin.
- Such SRO would include liaisoning between stakeholders and regulators to ensure efficient communication, improving standards and impositing regulatory codes for the industry and RBI has advised interested bodies to apply for a licence.
- An SRO is a non-government organization who should set and enforce rules and standards relating to the conduct of member entities in the industry, with an aim of protecting the customer and also promote ethical and professional standards.
- SRO is also entrusted with the responsibility of resolving disputes among its members internally through mutually accepted processes in order to ensure that members operate in a disciplined environment and even accept penal actions by the SRO.
It is learnt that already Business Correspondents Federation of India and Payment Council of India are already in the process of applying for a licence under the framework.