RBI Constitutes Payments Regulatory Board

The Reserve Bank of India (RBI) has constituted the Payments Regulatory Board (PRB), a new six-member body responsible for regulating and supervising all payment and settlement systems in the country. The RBI Governor will serve as the Chairman of the Board.

Composition of the Board

The newly formed PRB will comprise:

• The RBI Governor – as Chairman
• Two RBI officials nominated by the Central Board of the RBI
• Three nominees from the Central Government

Mandate and Functions

The Payments Regulatory Board is entrusted with the regulation and supervision of all types of payment systems —

• Electronic and non-electronic systems
• Domestic and cross-border transactions

It will ensure the efficiency, safety, and stability of India’s payment infrastructure and foster innovation in digital and traditional payment channels.

Legal Foundation and Structural Changes

The establishment of the PRB follows recent amendments to the Payment and Settlement Systems Act, 2007, which came into effect on May 9, 2025. With this, the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS)—a committee of the RBI Central Board—has been replaced by the PRB.

Operational Framework

The Department of Payment and Settlement Systems (DPSS) of the RBI will support the PRB and report directly to it.
As per the amended Act, decisions during board meetings will be taken by a majority of members present and voting, ensuring transparency and accountability in governance.