On Tuesday, the Reserve Bank of India (RBI) announced the formation of a brand-new Payments Regulatory Board. This important new body will be chaired by the RBI Governor and comprises six distinguished members.
This newly established Board will take on the crucial responsibility of regulating and supervising all payment systems within India, encompassing both electronic and traditional methods, as well as domestic and international transactions.
Alongside the Governor, the board will include the RBI’s Deputy Governor overseeing Payment & Settlement Systems, the Executive Director for Payment & Settlement Systems, the Secretary of the Department of Financial Services, the Secretary of the Ministry of Electronics and Information Technology, and Aruna Sundararajan (IAS, Retd). This diverse expertise ensures comprehensive oversight, as detailed in the RBI’s official circular.
These changes follow recent amendments to the Payment and Settlement Systems Act, 2007, which became effective on May 9, 2025. Consequently, the former Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), which operated as a committee under the RBI’s Central Board, has now been formally replaced by the new Payments Regulatory Board, also effective from May 9, 2025, according to the central bank.
The Principal Legal Advisor of the RBI will also serve as a permanent invitee to all board meetings, ensuring legal continuity and expert guidance.