IFSCA notifies Regulations for International Financial Services Centres Authority (Payments Regulatory Board) [Read Notification]

The regulations lay down the framework for the constitution, functioning, and governance of the Payments Regulatory Board (PRB) within IFSCA. The Board has been mandated to oversee and regulate payment and settlement systems in International Financial Services Centres (IFSCs).

As per the notification, the PRB will be composed in accordance with Section 3 of the Payment and Settlement Systems Act, 2007. The Board may also invite experts from fields such as payment systems, information technology, law, cyber security, and related areas as permanent or ad-hoc members. This inclusion of domain specialists is aimed at strengthening technical expertise within the regulatory framework.

Eligibility conditions for nominated members have been strictly defined. Members must possess integrity, experience, and professional standing in the relevant sectors. Persons above 70 years of age, sitting members of Parliament or State Legislatures, or individuals with unresolved conflicts of interest with payment systems are disqualified from nomination.

The tenure of nominated members is fixed at four years, with no provision for re-nomination, except in cases where the individual qualifies as a public servant under the Bharatiya Nyaya Sanhita, 2023.

The PRB will be supported administratively by the Division of Payment and Settlement Systems within IFSCA. Members are bound by a Code of Conduct, which requires them to act with integrity, maintain confidentiality of information, disclose any conflicts of interest, and uphold the highest standards of probity consistent with public office.

The Board is required to meet at least twice a year, with a quorum of three members including the Chairperson. Decisions will be taken by majority vote, and in the event of a tie, the Chairperson will exercise a casting vote. The Board also has the power to delegate its functions to its Chairperson, members, sub-committees, or officers of IFSCA for efficient administration.

Importantly, these regulations repeal the earlier IFSCA (Board for Regulation and Supervision of Payment and Settlement Systems) Regulations, 2024.

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