A six -member payment regulatory board (PRB) headed by the Governor of the Reserve Bank will now regulate and supervise payment systems in the country. There will also be three nominated people of the Central Government.
The Reserve Bank of India (RBI) has given this information in a notification. According to this, the new body will replace the payment and disposal system regulation and supervision board (BPSS).
The command of a five -member BPSS is also with the RBI Governor but there is no government designated person. The Reserve Bank has notified the Payment Regulatory Board Regulations, 2025 on 21 May.
According to the notification, the Payment Regulatory Board (PRB) will be chaired by the RBI Governor while the Deputy Governor in charge of the Payment and Settlement System, an officer of RBI nominated by the Central Board and three other members named by the Central Government will be its other members. Every member will have a vote.
RBI Governor, Deputy Governor and Central Bank officials will serve as ‘ex -officio’ members of the board. PRB Payments and Settlement System, Information Technology and Persons with experience in the field of law may invite permanent or ad hoc members to invite them to the meeting while RBI’s leading legal advisory meetings will be permanent invited members in the meetings.
The board will generally have at least two meetings a year. The government had formed an inter-ministerial committee headed by the Secretary of Economic Affairs to finalize the amendment of the Payment and Settlement System Act, 2007.
The committee, in its draft report, suggested the construction of a payment regulatory board as an independent regulator to deal with the payment related issues. However, in October 2018, the RBI had disagreed over the recommendation of being a regulator for payment systems outside the scope of the central bank.