RBI Governor Urges Payment System Operators To Ensure Good Governance: Report As per the report, Das asked PSOs to work on formation of self-regulatory organisations (SROs) for the greater good of all stakeholders
By Teena Jose •
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The Reserve Bank of India Governor Shaktikanta Das Saturday urged payment system operators to focus on ensuring good governance, prudent risk management and responsive grievance redress mechanism, according to a TIE report.
As per the reports, Das asked PSOs to work on formation of self-regulatory organisations (SROs) for the greater good of all stakeholders.
While addressing the Payment System Operators (PSO) Conference in Kochi, Das reportedly said that, "For long term success, the PSOs should specifically focus on ensuring good governance and prudent risk management; maintaining robust IT infrastructure with cyber resilience; and putting in place responsive grievance redress mechanism. Every failed transaction, every fraud attempted or actually carried out, every complaint that is not satisfactorily addressed should be a cause of concern and must invite a detailed root cause analysis."
According to the Governor, availability and affordability of an expeditious grievance redress mechanism is of utmost importance to ensure public trust in digital payments.
"More the struggle undertaken by people in resolving their grievances, the more unlikely it becomes that they would attempt digital payments in future. Also, the prompt reconciliation of transactions by PSOs is an easy and expeditious method of addressing customer grievances," the statement added.
Das said since increase in digital payments and its users brings to the fore potential risks pertaining to cyber security, data privacy and operational resilience, PSOs should always be cognisant of the emerging threats and put in place suitable risk mitigation measures.
A payment system is a system used to settle financial transactions through the transfer of monetary value and consist of the various mechanisms that facilitate the transfer of funds from one party (the payer) to another (the payee). PSOs by virtue of services they provide and the construct of models on which they operate, largely outsource their payment and settlement-related activities to various other entities. It is an institution which has been granted an authorisation for the operation of a payment system.
