RBI Forms 6-member Payments Regulatory Board to Oversee Payment Systems

As per the news reports, the Reserve Bank of India (RBI) has constituted a 6-member Payments Regulatory Board (PRB) with effect from May 9, 2025. The new board replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The RBI confirmed the constitution and operationalisation of the PRB through an official release on Tuesday.

Members of the Board

The PRB will be chaired by RBI Governor Sanjay Malhotra. Other RBI representatives on the board include the Deputy Governor and the Executive Director in charge of Payment and Settlement Systems.

3 members have been nominated by the central government. These are the Secretary, Department of Financial Services; the Secretary, Ministry of Electronics and Information Technology; and Aruna Sundararajan, former Telecom Secretary. The Principal Legal Adviser of the RBI will attend meetings as a permanent invitee.

Difference from BPSS

The earlier BPSS was a 5-member board headed by the RBI Governor. It did not include any government nominees. The PRB brings in three nominees from the government, expanding representation in the regulation of payment systems.

Legal Basis and Notification

The creation of the PRB follows amendments made to the Payment and Settlement Systems Act, 2007, through the Finance Act, 2017. A Gazette notification issued in May 2025 set out the composition and powers of the board. The RBI has also notified the Payments Regulatory Board Regulations, 2025, which define the functioning of the board.

Meetings and Role

As per the regulations, the PRB will meet at least twice every year. Its role is to regulate and supervise payment and settlement systems across the country. The scope covers oversight of both traditional and digital payment channels.

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Conclusion

With the PRB in place, the BPSS stands dissolved. The six-member body will now be responsible for the supervision of India’s payment ecosystem under the amended legal framework.

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