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.
