Payments Regulatory Board (PRB)

The Reserve Bank of India (RBI) has established a six-member Payments Regulatory Board (PRB) to enhance oversight and governance of the country’s payment systems.

Composition of PRB: It is chaired by the RBI Governor and comprises two additional RBI representatives along with three Central Government nominees.
- RBI Members include Deputy Governor and Executive Director in charge of Payment and Settlement Systems.
- RBI’s principal legal adviser is a permanent invitee to PRB meetings.
Predecessor Body: PRB replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a committee of the RBI’s Central Board.
Legal Authority: PRB derives powers from the Payment and Settlement Systems Act, 2007. The RBI’s Department of Payment and Settlement Systems (DPSS) reports directly to the PRB.
Decision-Making: Decisions are by majority vote of members present. In case of a tie, the chairperson or deputy governor has a second or casting vote.

Regulation of Payment Systems in India

The Payments and Settlement Systems Act, 2007 (PSS Act) empowers the RBI to regulate payment systems in India.
- It allows the RBI to license and authorize operators like Clearing Corporation of India Ltd (CCIL), National Payments Corporation of India (NPCI), card networks, ATM networks, and others.

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