Reserve Bank of India: Payments Regulatory Board (PRB)

The Reserve Bank of India (RBI) has constituted a six-member Payments Regulatory Board (PRB) to oversee the functioning of payment systems in India.

Board Composition

• Chaired by the RBI Governor, Sanjay Malhotra.
• Includes two other RBI representatives: 
  • Deputy Governor
  • Executive Director in charge of Payment and Settlement Systems
• Three nominees from the Central government: 
  • Secretary, Department of Financial Services
  • Secretary, Ministry of Electronics and Information Technology
  • Aruna Sundararajan, former Telecom Secretary

Authority and Functioning

• Replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a committee of the RBI’s Central Board.
• Derives authority from the Payment and Settlement Systems Act, 2007.
• Supported by the RBI’s Department of Payment and Settlement Systems (DPSS), which reports directly to it.
• Inclusion of government representatives allows the government to have a say in the payment systems.

Decision-Making and Meetings

• Board decisions require a majority of members present and voting.
• In case of a tie, the chairperson or the deputy governor (in absence of the chairperson) has a second or casting vote.
• Board is required to meet at least twice a year.
• Decisions can also be made through circulation among members for approval, following majority voting rules.

Additional Provisions

• The principal legal adviser of the RBI is a permanent invitee to the board meetings.