RBI Announces the Constitution of the Payments Regulatory Board [Read Announcement]
The RBI replaced the BPSS with the Payments Regulatory Board, empowered under PSS Act, 2007 to oversee regulation and supervision of payment systems.
The Reserve Bank ofIndia (RBI) has formally announced the constitution of the Payments Regulatory Board (PRB) with effect from May 9, 2025, following the enforcement of amendments to the Payment and Settlement Systems Act, 2007 (PSS Act, 2007) through the Finance Act, 2017.
The notification issued by the central bank informs the replacement of the erstwhile Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) which had functioned as a committee of the Central Board of the Reserve Bank.
The Gazette Notification F. No. 6/7/2017-BO.II dated May 6, 2025, issued by the Department of Financial Services, Government of India, appointed May 9, 2025 as the date of commencement of Sections 152 and 153 of the Finance Act, 2017. These provisions amended Section 3 of the PSS Act, 2007, thereby enabling the constitution of the Payments Regulatory Board under Section 3(2) of the Act.
The newly constituted Payments Regulatory Board comprises six members as provided under Section 3(3) of the PSS Act, 2007. The members are as follows:
Governor of the RBI - Chairperson of the Board, appointed under Section 3(3)(a) serves as the Chairperson of the Payments Regulatory Board as specified under Section 3(3)(a) of the Payment and Settlement Systems Act, 2007.
Deputy Governor in-charge of Payment and Settlement Systems holds membership on the Board under Section 3(3)(b) in the capacity of the senior RBI official responsible for payments and settlement systems.
The Executive Director, being the in-charge of Payment and Settlement Systems is appointed under Section 3(3)(c) oversees operational aspects of payment and settlement systems within RBI.
Secretary, Department of Financial Services is appointed as a member under Section 3(3)(d) to provide representation from the Department of Financial Services within the regulatory Board.
Secretary, Ministry of Electronics and Information Technology is appointed a member under Section 3(3)(d) to ensure representation of the MEITY in matters relating to the digital and technological aspects of payment systems.
Smt. Aruna Sundararajan, IAS (Retd.) has also been appointed as an external/member nominee under Section 3(3)(d).
The notification further provides that the Principal Legal Adviser of the RBI is designated a permanent invitee to the meetings of the Payments Regulatory Board in terms of Regulation 3(2) of the Payments Regulatory Board Regulations, 2025.
The formalization of the new Payments Regulatory Board is expected to strengthen India’s payments ecosystem by replacing the earlier BPSS framework with a more independent and statutory-based governance body directly empowered by the PSS Act, 2007.
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