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Business Standard
23-05-2025
- Business
- Business Standard
Six-member board to regulate payment systems: RBI notification
RBI governor headed a six-member Payments Regulatory Board, including three central government nominees, will regulate and supervise payment systems in the country, according to a central bank notification. The Payments Regulatory Board (PRB) will replace the Board for Regulation and Supervision of Payment and Settlement System (BPSS). The five-member BPSS is also headed by the RBI Governor but does not include any government nominee. The other members are a deputy government concerned and three directors from the Central Board of the Reserve Bank of India. The Reserve Bank has now notified 'Payments Regulatory Board Regulations, 2025'. According to the notification, other members of the governor-headed Payments Regulatory Board (PRB) will be the Deputy Governor in charge of the Payment and Settlement Systems, one officer of the RBI to be nominated by the Central Board, and three persons nominated by the central government. RBI Governor, Deputy Governor and the central bank official will function as "ex officio" members of the Board. It further said the PRB may invite persons with experience in the fields of payment and settlement systems, information technology, and law to attend its meeting either as permanent or ad hoc invitees and the Principal Legal Adviser of the RBI shall be a permanent invitee to the meetings. The Payments Regulatory Board shall ordinarily meet at least twice a year, the notification said. Earlier, the government had set up an inter-ministerial committee headed by the economic affairs secretary to finalise amendments to the Payment and Settlement Systems Act, 2007. In its draft report, the panel suggested the creation of an independent regulator Payments Regulatory Board to deal with payments-related issues. The Reserve Bank of India, in October 2018, released its 'Dissent Note' on the Inter-Ministerial Committee for the finalisation of Amendments to the Payment and Settlement Systems Act, objecting to the panel's recommendation of having a regulator for payment systems outside the RBI. "The Payments Regulatory Board (PRB) must remain with the Reserve Bank and be headed by the Governor, Reserve Bank of India. It may comprise 3 members nominated by the Government and RBI, respectively, with a casting vote for the Governor to ensure smooth operations of the Board. The composition of the PRB is also not in conformity with the announcements made in the Finance Bill by the Honourable Finance Minister," the RBI's 'Dissent Note' had said. According to the notification, each member of the Board shall have one vote. "All matters for approval which come up during any meeting of the Board shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the Deputy Governor, who is a Member of the Board, shall have a second or casting vote," said the notification published on May 21 in The Gazette of India. Commenting on the notification, Ranadurjay Talukdar, Partner and Payments Sector Leader, EY India said: "India has never seen payments regulated outside of the RBI. RBI oversight over the years has ensured stringent governance of systemic risks arising from the payments ecosystem -- setting up appropriate guardrails to protect consumer interests (such as grievance redressal and KYC guidelines) and infrastructural resilience (such as the cybersecurity framework for PSOs)". However, the establishment of a PRB with the right industry representation can lead to greater innovation; whether by expanding tokenisation to enable device-based payments across schemes or by introducing newer entities like NUEs to balance ever-growing digital payments volumes, Talukdar said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
23-05-2025
- Business
- Time of India
Six-member board to regulate payment systems: RBI notification
RBI governor headed a six-member Payments Regulatory Board, including three central government nominees, will regulate and supervise payment systems in the country, according to a central bank notification. The Payments Regulatory Board (PRB) will replace the Board for Regulation and Supervision of Payment and Settlement System (BPSS). The five-member BPSS is also headed by the RBI Governor but does not include any government nominee. The other members are a deputy government concerned and three directors from the Central Board of the Reserve Bank of India . The Reserve Bank has now notified 'Payments Regulatory Board Regulations, 2025'. According to the notification, other members of the governor-headed Payments Regulatory Board (PRB) will be the Deputy Governor in charge of the Payment and Settlement Systems, one officer of the RBI to be nominated by the Central Board, and three persons nominated by the central government. RBI Governor, Deputy Governor and the central bank official will function as "ex officio" members of the Board. Live Events It further said the PRB may invite persons with experience in the fields of payment and settlement systems, information technology, and law to attend its meeting either as permanent or ad hoc invitees and the Principal Legal Adviser of the RBI shall be a permanent invitee to the meetings. The Payments Regulatory Board shall ordinarily meet at least twice a year, the notification said. Earlier, the government had set up an inter-ministerial committee headed by the economic affairs secretary to finalise amendments to the Payment and Settlement Systems Act, 2007. In its draft report, the panel suggested the creation of an independent regulator Payments Regulatory Board to deal with payments-related issues. The Reserve Bank of India, in October 2018, released its ' Dissent Note ' on the Inter-Ministerial Committee for the finalisation of Amendments to the Payment and Settlement Systems Act, objecting to the panel's recommendation of having a regulator for payment systems outside the RBI. "The Payments Regulatory Board (PRB) must remain with the Reserve Bank and be headed by the Governor, Reserve Bank of India. It may comprise 3 members nominated by the Government and RBI, respectively, with a casting vote for the Governor to ensure smooth operations of the Board. The composition of the PRB is also not in conformity with the announcements made in the Finance Bill by the Honourable Finance Minister," the RBI's 'Dissent Note' had said. According to the notification, each member of the Board shall have one vote. "All matters for approval which come up during any meeting of the Board shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the Deputy Governor, who is a Member of the Board, shall have a second or casting vote," said the notification published on May 21 in The Gazette of India. Commenting on the notification, Ranadurjay Talukdar, Partner and Payments Sector Leader, EY India said: "India has never seen payments regulated outside of the RBI. RBI oversight over the years has ensured stringent governance of systemic risks arising from the payments ecosystem -- setting up appropriate guardrails to protect consumer interests (such as grievance redressal and KYC guidelines) and infrastructural resilience (such as the cybersecurity framework for PSOs)". However, the establishment of a PRB with the right industry representation can lead to greater innovation; whether by expanding tokenisation to enable device-based payments across schemes or by introducing newer entities like NUEs to balance ever-growing digital payments volumes, Talukdar said.
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Business Standard
22-05-2025
- Business
- Business Standard
Govt to have a say in new payments regulatory board with a significant role
In a major overhaul of the payments ecosystem, the Centre has notified the 'Payments Regulatory Board Regulations, 2025' to pave the way for a new Payments Regulatory Board (PRB) which will have significant representation from the government, and replace the Board for Regulation and Supervision of Payment and Settlement System (BPSS). The BPSS is a committee of the central board of the Reserve Bank of India (RBI) that exercises powers on its behalf, to regulate and supervise the payment and settlement systems in the country. The new regulatory entity, PRB, will be assisted by the Department of Payment and Settlement Systems (DPSS), a department in the RBI. According to a notification published on May 21, the composition of the Board will be in accordance with Section 3 of the Payment and Settlement Systems Act (PSS), 2007. Along with the RBI governor, who will be the Chairperson, the RBI Deputy Governor in charge of payment and settlement systems, and an RBI officer nominated by its central board, the Board will include three members nominated by the central government. Additionally, the PRB may invite persons with experience in the fields of payment and settlement systems, information technology, law, etc., to attend its meeting either as permanent or as ad hoc invitees, with the principal legal adviser of the RBI to be a permanent invitee. 'As I see it, there will be three nominees from the government and three from the RBI, with the governor having a casting vote. With this shift, the government will also have a significant role in the payment ecosystem. The industry will have to see if it appoints secretaries or independent experts from outside,' an industry executive with the knowledge of the matter said. Under the extant BPSS structure, the RBI governor is the chairperson of the board, that also includes a deputy governor, not more than three directors of the central board nominated by the RBI governor, two executive directors nominated by the governor, as well as the RBI's legal adviser. The notification states that the PRB may delegate any or all its powers or functions to the Chairperson of the board, or a member of the board, or a sub-committee of the board, or officers of RBI as it may deem fit and necessary for the efficient administration of the functions of the board. The PRB is required to meet at least twice in a year, and the meetings will be presided over by the chairperson or in his absence, by the deputy governor. The notification states that each member of the board will have one vote, and any item of business requires voting, then such an item will be decided by a majority of votes. In the event of an equality of votes, the chairperson, or in his absence, the Deputy Governor, will have a second or casting vote. In 2017, an inter-ministerial committee for finalising amendments to the PSS Act, 2007, had recommended, in a draft report, the creation of an independent regulator PRB to deal with payments related issues, with the chairperson appointed by the government in consultation with the RBI. Consequently, RBI in a strongly-worded dissent note said there is no case for having a regulator for payment systems outside the central bank. According to the RBI's dissent note in October 2018, PRB should be headed by the RBI governor, with the government nominating three members to the board, and a casting vote for the governor. 'The overarching impact of monetary policy on payment and settlement systems and vice versa provides support for regulation of payment systems to be with the monetary authority," the dissent note had stated. According to the notification published on Wednesday, the nominated members on the new board cannot be above 70 years of age; a member of parliament or any state legislature; have material conflict of interest with any other payment system and are unable to resolve such conflict, among other things. 'The composition of the board would have members from areas such as technology and payments systems. This implies that the board may want to look at the ecosystem from a holistic perspective by adding more members who may not directly be regulators,' an industry executive said. 'This board was under discussion. There is a fintech department, then there is DPSS, and other things. This new board may sit above everything else so that there are common standards in place to coordinate things,' a senior industry executive said.
Time of India
22-05-2025
- Business
- Time of India
Quicktouch gets RBI nod for Payment Aggregator license; full operations pending compliance
QuickPay, the fintech arm of Quicktouch Technologies, has received in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA). The approval, granted under the Payment and Settlement Systems Act, 2007, allows the company to begin the next phase of regulatory compliance. This approval allows QuickPay to move closer to becoming fully operational under RBI supervision. However, the platform still needs to complete compliance requirements before it can begin full operations. 'This recognition from the RBI strengthens our resolve to build a world-class digital payments platform that supports India's vision of a vibrant, inclusive and digitally empowered economy,' said Gaurav Jindal, Managing Director of Quicktouch Technologies. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
21-05-2025
- Business
- Time of India
Quicktouch gets RBI's in-principle approval for payment aggregator license
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel QuickPay, the fintech platform of Quicktouch Technologies , has received in-principle approval from the Reserve Bank of India (RBI) for a Payment Aggregator license under the Payment and Settlement Systems Act, 2007. This approval allows QuickPay to move closer to becoming fully operational under RBI supervision. However, the platform still needs to complete compliance requirements before it can begin full company said that this regulatory nod marks an important milestone for QuickPay in India's digital payments sector . It plans to complete technical and operational validations as required by RBI Jindal, Managing Director of Quicktouch Technologies , said, 'We are grateful to the Reserve Bank of India for this recognition. It strengthens our resolve to build a world-class digital payments platform that supports India's vision of a vibrant, inclusive and digitally empowered economy.'
