1.Payments Regulatory Board Functions (Payment Regulation)
What & Where
Statutory Payments Regulatory Board (PRB) under RBI governs all payment & settlement systems across India.
Constituted by Section 3, Payment & Settlement Systems Act 2007; amendments made it operational from 9 May 2025.
First meeting in Mumbai; nationwide jurisdiction over digital, card, UPI, RTGS and other non-cash instruments.
Quick Facts for MCQs
Legal & Policy
- Amendment-driven shift from BPSS to statutory PRB strengthens regulatory clarity and enforcement teeth.
- PRB can issue binding directions, revoke licences under PSS Act provisions.
Governance Structure
- Multi-stakeholder composition ensures govt, regulator, infrastructure and expert representation.
- Experts mandated from payments, fintech, cybersecurity, financial markets for domain depth.
Regulatory Functions
- Authorisation: grants, renews, cancels licences for UPI, cards, wallets, RTGS, etc.
- Standards: prescribes technical, operational, security norms; enforces settlement finality.
- Supervision: inspects providers, manages systemic risk, consumer protection mechanisms.
Systemic Significance
- Stability: legal certainty on netting, mitigates contagion during payment defaults.
- Trust: dedicated grievances redress, enhanced safety boost consumer confidence in digital payments.
- Growth: tailored governance keeps pace with rapid fintech and transaction volume expansion.
Key Data Points
| Feature | Data-Point |
|---|---|
| Establishing Law | Payment & Settlement Systems Act, 2007 |
| Operationalised on | 9 May 2025 |
| Predecessor Body | BPSS |
| Chairperson | RBI Governor |
| Statutory Members | RBI Dy. Governor (payments), Govt nominees, domain experts, UIDAI/NPCI officials |
| First Meeting Chair | Sanjay Malhotra |
| Core Mandate | Authorise, regulate, supervise payment systems |
| Headquarters | Mumbai |
Related UPSC Prelims PYQs
To increase transparency and consumer awareness and handle customer complaints, a 'Centralised Receipt and Processing Centre' and an 'Integrated Ombudsman Scheme' have been set up. These two schemes are related to which one of the following institutions?
Consider the following statements:




