Context:
The RBI has notified the structure and functioning of the Payments Regulatory Board (PRB) under the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS). The PRB is housed within the RBI and will oversee the payments ecosystem with powers of delegation and standard-setting.
Background
- A 2017 inter-ministerial committee had proposed an independent PRB outside RBI control.
- RBI opposed this, citing the interconnectedness of monetary policy and payment systems.
- In a 2018 dissent note, RBI asserted:
- PRB must be chaired by RBI Governor
- Government may nominate 3 members
- Governor should hold a casting vote
Board Composition
- Chairperson: RBI Governor
- Other Members:
- One Deputy Governor
- Up to 3 directors from RBI Central Board (nominated by Governor)
- 2 Executive Directors (nominated by Governor)
- RBI’s Legal Adviser
Functioning and Governance
- Meetings: At least twice a year
- Voting:
- Each member gets one vote
- Majority wins on items of business
- Chairperson (or Deputy Governor in absence) holds casting vote in case of tie
- Delegation of Powers:
- The PRB can delegate its powers to:
- Chairperson or a Board member
- Sub-committees or RBI officers
- The PRB can delegate its powers to:
- Members must not:
- Be above 70 years
- Be MPs or MLAs
- Have unresolved conflicts of interest with payment systems
