In News:

The Central Government has notified the Payments Regulatory Board Regulations, 2025, replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) with a new statutory authority — the Payments Regulatory Board (PRB).

About the PRB

• Legal Basis: Constituted under Section 3 of the Payment and Settlement Systems Act, 2007.
• Objective: To regulate and supervise payment systems in India with broader representation and holistic oversight.

Composition (Total: 6 Members)

• Chairperson: Governor of the Reserve Bank of India (RBI)
• Ex-Officio Members:
  • Deputy Governor of RBI in charge of the Department of Payment and Settlement Systems (DPSS)
  • One RBI official nominated by the RBI Central Board
• Government Nominees:Three members nominated by the Central Government (previous BPSS had none)

Other Key Features:

• Expert Consultation: PRB can invite experts from fields like law and IT as permanent or ad hoc members.
• Eligibility Criteria:
  • Members must be below 70 years of age
  • Should not hold any legislative office or have material conflicts of interest
• Governance:
  • Board meets at least twice a year
  • Decisions are by majority vote; in case of a tie, the Chairperson (or Deputy Governor) casts the deciding vote.
• Delegation: PRB can delegate functions to RBI officers or sub-committees.

Institutional Support

• The PRB will be supported by the RBI’s DPSS, which will report directly to the board.

Significance of the Reform

• Marks a structural reform in the regulation of India’s rapidly growing payments ecosystem.
• Enhances government oversight through its nominees.
• Aims to improve coordination among various departments (e.g., fintech, digital payments).
• Seeks to provide uniform and consolidated regulation across diverse payment systems.