Govt to have a say in new payments regulatory board

RBI governor, as chair of the board, will have casting vote

- AJINKYA KAWALE & SUBRATA PANDA

In a major overhaul of the payments ecosystem, the Centre has notified the 'Payments Regulatory Board Regulations, 2025' to pave the way for a new Payments Regulatory Board (PRB) which will have significant representation from the government, and replace the Board for Regulation and Supervision of Payment and Settlement System (BPSS).

The BPSS is a committee of the central board of the Reserve Bank of India (RBI) that exercises powers on its behalf, to regulate and supervise the payment and settlement systems in the country. The new regulatory entity, PRB, will be assisted by the Department of Payment and Settlement Systems (DPSS), a department in the RBI.

According to a notification published on May 21, the composition of the Board will be in accordance with Section 3 of the Payment and Settlement Systems Act (PSS), 2007. Along with the RBI governor, who will be the Chairperson, the RBI Deputy Governor in charge of payment and settlement systems, and an RBI officer nominated by its central board, the Board will include three members nominated by the central government.