The Reserve Bank of India (RBI) has just set up a new six-member Payments Regulatory Board (PRB). This board will be responsible for overseeing and regulating payment systems throughout India. It takes the place of the previous Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). This change is a significant move towards enhancing the governance and regulatory framework of the country’s digital payment landscape.
Payments Regulatory Board
The Payments Regulatory Board chaired by RBI Governor Sanjay Malhotra. Along with him, the two other RBI members on the PRB are the Deputy Governor and the Executive Director responsible for Payment and Settlement Systems. On the government side, the nominees include the Secretary of the Department of Financial Services, the Secretary of the Ministry of Electronics and Information Technology, and Aruna Sundararajan, who previously served as the Telecom Secretary.
Legal Authority and Framework
The PRB takes over from the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), which was a committee under the RBI’s Central Board. This new board gets its power from the Payment and Settlement Systems Act of 2007.
The PRB is in charge of overseeing how payment systems operate, with support from the RBI’s Department of Payment and Settlement Systems (DPSS). The DPSS reports directly to the PRB. When it comes to making decisions during PRB meetings, a majority vote from the members present is required. If there’s a tie, the chairperson or the deputy governor gets to cast the deciding vote. The board is expected to meet at least twice a year, but the chairperson can also send out items for approval between meetings. Additionally, the RBI’s principal legal adviser is always invited to attend the board meetings.
