The Central government has notified the Payments Regulatory Board Regulations, 2025, replacing the RBI’s Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) with a new entity the Payments Regulatory Board (PRB).

About Payments Regulatory Board (PRB)

• Composition: 1 Chairman + 5 Members
  • Ex-Officio: Three RBI representatives (RBI Governors (as Chairman) , Deputy Governor of RBI (Department of Payment and Settlement Systems (DPSS) and One RBI Representative/Officer).
  • Central government Nominee: 3 Government Nominee, Indicating greater government involvement.
  • The PRB may invite experts (in law, IT, etc.) as permanent or ad hoc attendees.
• Eligibility Restrictions: Board members must be under 70 and free of legislative roles or material conflicts of interest.
• The PRB will be assisted by the RBI’s Department of Payment and Settlement Systems (DPSS).
• Legal Framework: The structure aligns with Section 3 of the Payment and Settlement Systems Act, 2007.
• Governance: The board meets at least twice a year; decisions are made by majority vote, with the chairperson (or deputy governor in their absence) casting the deciding vote in case of a tie.
• Delegation Powers: PRB may delegate functions to sub-committees or RBI officers.

RBI’s Concern

• The RBI had previously opposed the idea of an external regulator for payment systems, arguing such systems are tightly linked to monetary policy, and should remain under central bank control.

Significance

• This change is seen as a structural overhaul of India’s payments ecosystem. 
• Experts point out that the board may bring a holistic oversight above various existing departments (like fintech and DPSS), standardizing and coordinating regulatory efforts.