RBI Constitutes Six-Member Payments Regulatory Board to Oversee Payment Systems

The Reserve Bank of India (RBI) has established a six-member Payments Regulatory Board (PRB) for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB is chaired by RBI Governor Sanjay Malhotra and includes the Deputy Governor and Executive Director in charge of Payment and Settlement Systems. Three members are nominated by the central government, including the Secretary of the Department of Financial Services, the Secretary of the Ministry of Electronics and IT, and Aruna Sundararajan, former Telecom Secretary. The RBI’s Principal Legal Adviser is a permanent invitee. The PRB will regulate and supervise all payment systems in India, covering electronic, non-electronic, domestic, and cross-border systems. The board meets at least twice a year and makes decisions through majority voting, with the chairperson holding a casting vote in case of a tie. The new structure enhances government representation and strengthens oversight under the amended Payment and Settlement Systems Act, 2007.