Reserve Bank of India: Payments Regulatory Board (PRB)
The Reserve Bank of India (RBI) has constituted a new six-member Payments Regulatory Board (PRB) tasked with overseeing the country's payment systems.
Composition of the PRB
- Chaired by RBI Governor Sanjay Malhotra.
- Includes two other RBI representatives:
- Deputy Governor
- Executive Director in charge of Payment and Settlement Systems
- Three Central government nominees:
- Secretary of the Department of Financial Services
- Secretary of the Ministry of Electronics and Information Technology
- Aruna Sundararajan, former Telecom Secretary
Authority and Support
- The PRB replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a former RBI committee.
- It derives its authority from the Payment and Settlement Systems Act, 2007.
- Supported by the RBI’s Department of Payment and Settlement Systems (DPSS), reporting directly to the PRB.
Significance of Government Involvement
- Inclusion of government representatives marks a shift as the government now influences the functioning of the country's payment systems.
Decision Making and Meetings
- Decisions require majority approval during board meetings.
- In case of a tie, the chairperson or in their absence, the deputy governor, will have a casting vote.
- Board required to meet at least twice a year.
- Items requiring a decision may be circulated to members for approval by majority vote.
- The principal legal adviser of the RBI is a permanent invitee to the board meetings.