Context:
The Reserve Bank of India (RBI) notified the Payments Regulatory Board Regulations, 2025, under Payment and Settlement Systems Act, 2007.
Payments Regulatory Board (PRB):
- A newly constituted body under the Reserve Bank of India (RBI).
- It replaces the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), which was formed under the Payment and Settlement Systems (PSS) Act, 2007.
- Composition –
- Total Members: 6
- Chairperson: RBI Governor (Ex-Officio)
- Other Members: Deputy Governor in charge of Payment and Settlement Systems; One RBI officer, nominated by the Central Board; 3 members nominated by the Central Government.
- Functions & Responsibilities –
- Regulation & Supervision of payment systems in India.
- Oversight of digital and electronic payments, including UPI, mobile wallets, and other fintech innovations.
- Ensuring security, efficiency, and accessibility of payment systems.
- Policy formulation for payment infrastructure development.
- Meetings & Decision-Making – The PRB must meet at least twice a year.
- Each member has one vote.
- Decisions are made by majority vote.
- In case of a tie, the RBI Governor (or Deputy Governor in absence) has a casting vote.
- Expert Participation – The PRB can invite experts in payment systems, IT, and law.
- The Principal Legal Adviser of RBI is a permanent invitee.
Difference Between BPSS & PRB:
| Aspect | BPSS (Old Body) | PRB (New Body – 2025) |
| Status | Existing regulatory board under RBI | Newly constituted regulatory board replacing BPSS |
| Governing Authority | Reserve Bank of India (RBI) | Reserve Bank of India (RBI) |
| Chairperson | RBI Governor | RBI Governor (Ex-Officio) |
| Composition | 5-member body (All from RBI) | 6-member body (3 RBI nominees + 3 Govt nominees) |
| Government Representation | No government nominees | 3 Central Government nominees |
| Voting Rights | Not detailed publicly | Each member gets one vote, majority-based decisions |
| Meetings | As decided by RBI | At least twice a year (mandatory) |
| Expert Participation | Not specified | Experts (payments, IT, law) can be permanent/ad hoc invitees |
Source: ET
Previous Year Question
With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crore at present.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2017 Prelims]
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (d)