The Reserve Bank of India (RBI) conducted the first meeting of the newly established Payments Regulatory Board (PRB) on January 5, 2026, in Mumbai, under the chairmanship of RBI Governor Sanjay Malhotra. This meeting marks a major milestone in the regulation and supervision of India’s payment systems in the rapidly evolving digital economy.
The Payments Regulatory Board (PRB) is a statutory regulatory authority constituted following an amendment to the Payment and Settlement Systems Act, 2007, which became effective on May 9, 2025. This new board replaces the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), broadening the scope and authority to oversee both electronic and non-electronic payment systems in India.
During the inaugural meeting, the PRB reviewed the functions of the Department of Payment and Settlement Systems (DPSS), which now reports directly to the board. Members discussed key domestic and global payment system priorities, reflecting the importance of India’s role in international financial networks.
A major agenda item was the presentation and discussion of the draft Payments Vision 2028—a strategic roadmap outlining objectives to enhance the payments ecosystem over the next few years, focusing on innovation, security, and inclusivity. Board members provided guidance to strengthen the framework that supports India’s expanding digital transaction landscape.
The board also examined the findings of a recent RBI-conducted survey on digital payments. This survey offers insights into trends, user behaviors, and challenges within India’s digital payment ecosystem—critical for policy formulation and regulatory reforms in the coming years.
In addition to Governor Sanjay Malhotra, several senior officials participated in the meeting, including:
Under the new regulatory framework, the PRB is structured to include six members, including:
The establishment and operationalization of the Payments Regulatory Board (PRB) represent a significant regulatory reform in India’s financial sector. With the digital economy expanding rapidly, understanding this new institutional framework is crucial for banking, economic, and general awareness sections of competitive exams such as:
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With the PRB’s mandate to oversee digital and traditional payment systems, the reform also signifies how India is preparing for future financial challenges—such as cyber security, financial inclusion, and cross-border payment interoperability. These areas are increasingly asked in essay and analytical sections of civil services exams.
Terms like Payment and Settlement Systems Act, Payments Vision 2028, and Department of Payment and Settlement Systems (DPSS) are becoming high-value keywords in exam questions, especially in banking and economy sections.
Since the early 2000s, the Reserve Bank of India (RBI) has been the authority regulating payment systems through the Payment and Settlement Systems Act, 2007 (PSS Act). The Act provided legal backing for RBI to regulate and supervise payment infrastructures across the country.
Before 2025, the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) was the committee within the RBI’s Central Board responsible for overseeing payment systems. However, it lacked government representatives and was limited in its authority relative to the emerging needs of a rapidly digitizing economy.
With the explosive growth of digital transactions (including UPI, mobile wallets, net banking, and fintech platforms), the RBI and the Government of India recognized the need for a more inclusive and empowered regulatory structure. This led to the amendment of the PSS Act in 2025, enabling the creation of the Payments Regulatory Board (PRB), which includes government nominees and broader supervisory powers.
The PRB’s first meeting and its focus on the Payments Vision 2028 highlight India’s proactive approach toward shaping a secure, interoperable, and globally competitive payment ecosystem. This reform reflects India’s intent to balance innovation with regulation, an ongoing theme in modern financial governance.
The Payments Regulatory Board (PRB) is a statutory body established under the Payment and Settlement Systems Act, 2007, amended in 2025. It is responsible for regulating and supervising all payment systems in India, including both digital and non-digital modes.
The first meeting of the PRB was held on January 5, 2026, in Mumbai, chaired by RBI Governor Sanjay Malhotra.
The Payments Vision 2028 is a strategic roadmap designed to strengthen India’s payment ecosystem, focusing on innovation, security, financial inclusion, and international interoperability in digital and traditional payment systems.
The PRB consists of six members:
The PRB was formed to replace the BPSS and provide a more empowered and inclusive regulatory framework for India’s rapidly growing digital payments ecosystem. The inclusion of government nominees ensures collaboration between RBI and government authorities.
The Department of Payment and Settlement Systems (DPSS) supports the PRB in policy formulation, supervision, and monitoring of payment systems in India.
Apart from the RBI Governor, attendees included senior RBI officials, secretaries from the Ministry of Electronics and IT, Department of Financial Services, and other government nominees.
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