Govt Gets Bigger Say: New Payments Regulatory Board to Feature Significant Government Role

In a major overhaul of India’s payments ecosystem, the Centre has notified the ‘Payments Regulatory Board Regulations, 2025’, establishing a new Payments Regulatory Board (PRB) with significant government representation. The PRB will replace the existing Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) and will be chaired by the RBI Governor, with three members nominated by the central government and three from the RBI, giving the government a substantial voice in regulatory decisions.

The PRB’s structure aims to provide a more holistic and coordinated approach to payment system oversight, with the ability to invite experts from technology, law, and payments as permanent or ad hoc invitees. This move follows recent amendments to the Payment and Settlement Systems Act, which took effect on May 9, 2025, and marks a significant shift in regulatory authority, aligning India’s payment governance with global best practices.

 

Source: Business Standard, Taxmann, TaxScan