The Reserve Bank of India (RBI) has set up the Payments Regulatory Board (PRB) under the Payment and Settlement Systems Act, 2007, following recent amendments notified by the government. The central bank confirmed the development in a press release issued on Tuesday, September 30. According to the RBI, the amendments to Section 3 of the Act, introduced through the Finance Act, 2017, came into effect on May 9, 2025 after a Gazette notification was issued by the Department of Financial Services on May 6. With this, the erstwhile Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), which operated as a committee of the RBI’s Central Board, stood dissolved.
Members of the new board
The Payments Regulatory Board has been constituted under Section 3(2) of the Act. It comprises:
RBI Governor –Â Chairperson
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Deputy Governor in charge of payment and settlement systems –Â Member
Executive Director in charge of payment and settlement systems –Â Member
Secretary, Department of Financial Services –Â Member
Secretary, Ministry of Electronics and Information Technology –Â Member
Aruna Sundararajan, retired IAS officer –Â Member
In addition, the Principal Legal Adviser of the RBI will attend board meetings as a permanent invitee, in line with the Payments Regulatory Board Regulations, 2025.
The shift from BPSS to the PRB marks a step towards creating a stronger and more structured framework for India’s payments sector. The new board will have statutory powers under the amended law to authorise payment systems, regulate their functioning, and ensure that transactions remain secure, efficient and reliable.
Officials said the dedicated board will strengthen institutional oversight at a time when India is witnessing record growth in digital transactions. UPI alone processed more than 13 billion payments in August 2025, reflecting the scale of activity that now requires close supervision.
Background on BPSS
The BPSS was created in 2005 as a committee of the RBI’s Central Board to regulate and supervise payment and settlement systems. However, as digital payments expanded rapidly over the past decade, the need for a more empowered and independent authority became apparent. The Finance Act, 2017, provided the legislative basis for this transition, though its provisions came into effect only this year.
