RBI Sets Up Payments Regulatory Board:
The Reserve Bank of India (RBI) has set up a new six-member Payments Regulatory Board (PRB) to oversee and regulate India’s payment systems. This move comes at a time when India’s digital payment landscape is expanding rapidly, requiring more focused and adaptable oversight. The PRB replaces the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) and will function with broader authority and a more inclusive structure, ensuring transparency, efficiency, and security in both domestic and cross-border payment systems.The PRB derives its authority from the Payment and Settlement Systems Act, 2007, which grants legal power for the regulation of payment and settlement systems across India.
Unlike its predecessor, the PRB is not just a sub-committee of the RBI’s Central Board but a distinct entity supported by the Department of Payment and Settlement Systems (DPSS), which will now report directly to this board. This transition signals a more autonomous and robust regulatory framework that aligns with India’s ambitions to lead in digital payments globally.
