India Cashes In on Reform: Launches Regulatory Board to Shape Fintech Future

In a milestone move for India's booming digital payments sector, the government has formally established the Payments Regulatory Board (PRB) under the Payments Regulatory Board Regulations, 2025. The new regulator will supersede the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), the largest overhaul of payments regulation in over a decade.

 

The RBI Governor heads the six-member PRB, which for the first time has three government nominees along with key RBI officials. The hybrid structure balances RBI leadership with increased government influence, with an aim to promote transparency, innovation, and robust consumer protection in a market where platforms like UPI process over 11 billion transactions per month.

 

The PRB will meet at least twice a year, with equal voting rights to all members. If there is a tie, the RBI Governor will decide by casting his vote. Legal and technical experts may be invited to assist in contributing to making the board agile and well-informed.

 

Industry leaders see the PRB as a levelling factor that will subject banks, fintechs, and wallets to standardised rules and catalyse innovations in tokenisation, device payments, and new umbrella institutions. Through the creation of centrality of regulation, the PRB is likely to give a boost to India's digital finance ecosystem and bring about the next stage of fintech growth.

 

Source: Crowdfund Insider, CNBC TV18, Business Standard