Centre notifies formation of Payments Regulatory Board; DFS and Meity secretaries among 3 external members

The Centre has notified the formation of the Payments Regulatory Board (PRB), which will replace the Reserve Bank of India’s (RBI) Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

The new body will have greater government representation, with three external members, including Department of Financial Services (DFS) Secretary M. Nagaraju, Ministry of Electronics and IT (Meity) Secretary S. Krishnan, and retired IAS officer Aruna Sundararajan, nominated by the Centre.

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The RBI Governor will chair the PRB, while the Deputy Governor, in charge of payment and settlement systems, and an executive director of the RBI, will be members.

Additionally, the RBI’s principal legal adviser will serve as a permanent invitee to board meetings.

The PRB will be supported by the RBI’s Department of Payment and Settlement Systems (DPSS).

As per the May 21 notification, the board’s composition aligns with Section 3 of the Payment and Settlement Systems (PSS) Act, 2007.

The PRB will meet at least twice a year, with decisions taken by majority vote. In case of a tie, the chairperson, or, in his absence, the Deputy Governor, will cast a vote. The board also has the discretion to invite experts in payment systems, IT, or law to its meetings, either on a permanent or on an ad hoc basis.

The BPSS, which the PRB replaces, was earlier a committee of the RBI central board that regulated and supervised payment and settlement systems on behalf of the central bank.