Source: IE
Context:
The Reserve Bank of India (RBI) has constituted a six-member Payments Regulatory Board (PRB) to regulate payment systems in India. The board replaces the existing Board for Regulation and Supervision of Payment and Settlement Systems (BPSS).
Composition of PRB:
- Chair: RBI Governor Sanjay Malhotra
- RBI Members (3):
- Deputy Governor
- Executive Director in charge of Payment and Settlement Systems
- Governor
- Government Nominees (2):
- Secretary, Department of Financial Services (DFS)
- Secretary, Ministry of Electronics and Information Technology (MeitY)
- Additional Member: Aruna Sundararajan, former MeitY secretary
- Permanent Invitee: RBI’s Principal Legal Adviser
Functions and Meetings:
- Regulates payment systems in India
- Will ordinarily meet at least twice a year
- Replaces BPSS, which had no government representatives and was a five-member body
Background:
- The move follows recommendations from an inter-ministerial committee headed by the Economic Affairs Secretary.
- The committee suggested amendments to the Payment and Settlement Systems Act, 2007 and proposed an independent regulatory board to handle payment-related issues.
