Context:
The Reserve Bank of India (RBI) has formally recognised the Self-Regulated PSO Association (SRPA) as a self-regulatory organisation (SRO) for the payment system operators (PSO) sector, a key step in strengthening governance, oversight, and compliance in India’s digital payments ecosystem.
What is SRPA?
The Self-Regulated PSO Association (SRPA) is an industry-led body formed to:
- Support the orderly growth of payment system operators
- Establish uniform standards and best practices
- Strengthen compliance mechanisms
- Act as a bridge between the RBI and PSO ecosystem
SRPA is an industry-led body consisting of major payment system operators, including:
- Razorpay
- PhonePe
- BillDesk
- CRED
- Infibeam Avenues (CCAvenue)
- Mobikwik
- Euronet
- Spice Money, Payworld, Unimoni, Mswipe, Zokudo, SabPaisa, OxyMoney, Open, In Solutions Global, Concerto Systems
More PSOs are expected to join after RBI’s formal approval.
Why RBI Granted SRO Status to SRPA?
- To streamline compliance and ensure uniform standards across the PSO ecosystem
- To promote ethical conduct and consumer protection
- To act as a bridge between the industry and the regulator
- To improve supervision, dispute resolution, and best practices in digital payments
- To support India’s fast-growing UPI-driven payments landscape
Role of an SRO in the Payments Sector
An SRO:
- Frames and enforces rules, codes of conduct, and compliance standards
- Ensures industry alignment with RBI’s regulatory priorities
- Promotes self-discipline and accountability among members
- Enhances consumer trust in digital payments
India already has SROs for other sectors, such as:
- FACE – Fintech (digital lending)
- FIDC – NBFCs
- Sa-Dhan & MFIN – Microfinance
- FIMMDA – Fixed income and derivatives markets
SRPA is now the dedicated SRO for payment system operators.
What Will SRPA Do Now?
According to its leadership, SRPA will:
- Operationalise its governance and supervisory mechanisms
- Ensure members follow regulatory and ethical standards
- Promote innovation while safeguarding consumer interests
- Support a safe, inclusive, and globally benchmarked payments ecosystem
Significance for India’s Digital Payments Ecosystem
- The SRO approval comes at a time when India is witnessing unprecedented digital payments growth, led by:
- UPI (20.7 billion transactions worth ₹27.28 trillion in October 2025)
- Growing merchant payments, wallets, and card-based transactions
- Strengthens institutional frameworks needed for a mature and resilient payments industry
- Enhances risk management, fraud detection, and operational discipline
