Govt Nominees in PRB May Help Bridge RBI-FinMin Gap

The representation of three central government-nominated executives on the Payments Regulatory Board (PRB) is expected to help resolve differences between the Reserve Bank of India (RBI) and the Ministry of Finance (FinMin), sources in the know said.

- AJINKYA KAWALE & SUBRATA PANDA

This would pave the way for a more coordinated approach to payments regulation, they said.

The priorities for the new board could include decisions on how Unified Payments Interface (UPI) is incentivized in the future, the long-awaited introduction of a merchant discount rate (MDR) for real-time payments system, and the internationalisation of India's payments infrastructure, among other issues.

The overhaul follows the Centre's notification of the "Payments Regulatory Board Regulations, 2025" last week, which will replace the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). Once fully constituted, the Department of Payment and Settlement Services will report to the PRB.