Payments Regulatory Board (PRB)

Payments Regulatory Board (PRB) is a statutory body under the Payment and Settlement Systems Act, 2007, regulating and supervising India’s payment systems. Know its composition, role, and key outcomes of its first meeting in January 2025.

Table of Contents

Context

The first meeting of the Payments Regulatory Board (PRB) was held on January 05, 2025, under the chairmanship of Sanjay Malhotra. The PRB was constituted following the notification of amendments to the Payment and Settlement Systems Act, 2007, carried out through the Finance Act, 2017.

About the Payments Regulatory Board

The Finance Act, 2017 designated the Reserve Bank of India as the authority for regulation and supervision of payment systems under the Payment and Settlement Systems Act, 2007.
RBI was mandated to perform this role through a statutory board named the Payments Regulatory Board.
The PRB derives its statutory basis from the Payment and Settlement Systems Act, 2007.

Key Objective:
To ensure safe, secure, efficient, and accessible payment systems in India amid rapid digitalisation.

Membership of the Payments Regulatory Board

Governor of RBI – Ex-officio Chairperson
Deputy Governor of RBI (in charge of Payment & Settlement Systems) – Ex-officio Member
One officer of RBI nominated by the Central Board – Ex-officio Member
Three nominated members of the Government of India – Members

Replacement of BPSS

With the notification of PRB, the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)—a committee of RBI’s Central Board—stands replaced from May 9, 2025.
Important Note:
- BPSS also had a statutory basis under the Payment and Settlement Systems Act, 2007.
- The 2017 amendment legally replaced BPSS with PRB, but delays in notification led to the continuation of BPSS until PRB became operational.

Developments in the First PRB Meeting

The Board reviewed:

Functioning of the Department of Payment & Settlement Systems (DPSS).
Draft Payments Vision 2028, outlining the future roadmap for India’s digital payments ecosystem.
Findings of the RBI Survey on Digital Payments, assessing trends, adoption, and challenges.

Significance for Exams (UPSC / State PSCs)

Strengthens institutional oversight of digital payments.
Reflects India’s shift towards a robust, innovation-friendly payment governance framework.
Important for Economy, Banking, and Digital Infrastructure topics.