The Reserve Bank of India (RBI) on Thursday announced the framework for the formation of a self-regulatory organisation (SRO) for regulated payment system operators (PSOs) in the country.
RBI will issue a letter of recognition to a group of bank and non-bank PSOs and reserves the right to approve the appointment of important positions in the board of directors for the entity.
“The SRO is expected to resolve disputes among its members internally through mutually accepted processes to ensure that members operate in a disciplined environment and even accept penal actions by the SRO,” RBI said in its statement.
In its framework, the RBI also stated that the board of the SRO will establish a code of conduct for its members and will appoint non-members to one-third capacity of the board of directors.
In a separate notification, the central bank has stated that PSOs cannot issue any new proprietary QR codes, and will have to move existing QR codes to an interoperable system by March 31, 2022. It will not affect the two interoperable QR codes — Bharat QR and UPI QR — both operated by the National Payments Corporation of India (NPCI).
The central bank said that it will continue a consultative process to standardise and improve the interoperable QR codes in the statement.
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