Revamped Payments Regulation: RBI's New Board Takes Charge

The Reserve Bank of India has formed a new Payments Regulatory Board to regulate the country's payment systems, according to a notification released in May. This six-member panel will include significant representation from the central government, consisting of three appointed nominees alongside three Reserve Bank officials.

The board, headed by the RBI Governor, replaces the previous Board for Regulation and Supervision of Payment and Settlement System. Unlike its predecessor, the new board integrates government participation through the inclusion of three government nominees — the Secretary of the Department of Financial Services, the Secretary of the Ministry of Electronics and Information Technology, and former telecom secretary, Aruna Sundararajan.

The Payments Regulatory Board aims to convene at least twice a year. It also includes two other Reserve Bank members: the Deputy Governor and the Executive Director in charge of Payment and Settlement Systems. The Principal Legal Adviser of the RBI holds a permanent invitation to board meetings, providing legal insights and oversight.

(With inputs from agencies.)