Six Member ‘Payments Regulatory Board’ constituted by RBI | Current Affairs | Vision IAS
News Today Logo

Six Member ‘Payments Regulatory Board’ constituted by RBI

Posted 01 Oct 2025

2 min read

Article Summary

Article Summary

The RBI has formed a six-member Payments Regulatory Board to oversee payment systems, replacing the previous BPSS, with roles in regulation, supervision, and ensuring customer protection under the Payment and Settlement Systems Act, 2007.

The Board will be responsible for the regulation and supervision of payment systems under the Payment and Settlement Systems Act, 2007.

  • It has replaced the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

About the Payments Regulatory Board

  • Composition & Structure:
    • As per Section 3 of the Payment and Settlement Systems Act, the Board shall consist of 
      • Governor of the Reserve Bank as ex officio Chairperson
      • Deputy Governor of the Reserve Bank (in-charge of the Payment and Settlement Systems) as ex officio member
      • One officer of the Reserve Bank, nominated by the Central Board of the Reserve Bank as ex officio member;
      • Three central government nominated persons, expert in payment systems, IT, cybersecurity, law.
        • Tenure: 4 years, non-renewable; resignation allowed with 6 weeks’ notice.
        • Disqualifications: Age >70; insolvency; criminal conviction ≥180 days; MPs/MLAs, etc.
    • Principal Legal Adviser of RBI is a permanent invitee.
    • RBI may also invite experts (permanent/ad hoc) for meetings.
  • Meetings: At least twice a year with a Quorum of 3 members including Chairperson (or Deputy Governor in his absence) and a nominated member.
  • Decision-making: Decisions by majority of votes of the members present and voting;
    • Chairperson (or Deputy Governor in his absence) has a casting vote in case of tie.

About Payment and Settlement Systems Act, 2007

  • Goal: Regulate and supervise payment systems in India, covering manual clearing to electronic transfers like RTGS and NEFT.  
  • Central Authority: RBI is designated as the central authority for overseeing payment and settlement infrastructure. 
  • Customer Protection: Ensures customer protection by preventing unfair charges and holding intermediaries accountable for mishaps.
  • Tags :
  • Payments Regulatory Board
  • Payment and Settlement Systems Act, 2007
Watch News Today
Subscribe for Premium Features

Quick Start

Use our Quick Start guide to learn about everything this platform can do for you.
Get Started