RBI operationalises new Payments Regulatory Board; Governor Sanjay Malhotra to chair

RBI announces new Payments Regulatory Board

The Reserve Bank of India (RBI) on Tuesday said the newly created Payments Regulatory Board (PRB) has been formally constituted and operationalised with effect from May 9, 2025, replacing the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).

As per the RBI press release, the six-member PRB will be chaired by RBI Governor Sanjay Malhotra, with the Deputy Governor and Executive Director in charge of Payment and Settlement Systems as members. From the government side, the Secretary, Department of Financial Services, the Secretary, Ministry of Electronics and IT, and Aruna Sundararajan (IAS Retd.) have been nominated.

The RBI also notified the Payments Regulatory Board Regulations, 2025, under which the central bank’s Principal Legal Adviser will serve as a permanent invitee to PRB meetings.

The PRB was first announced in May through a Gazette notification following amendments to the Payment and Settlement Systems Act, 2007, via the Finance Act, 2017. The fresh notification clarifies the final composition and framework of the statutory body that will regulate and supervise India’s fast-growing payments ecosystem.