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RBI’s Payments Regulatory Board Holds First Meeting

8 January 20261 min read
BANKING & FINANCERBI’s PaymentsRegulatory BoardHolds FirstMeeting8 January 2026safalsetu.com

Why in the news

The Payments Regulatory Board convened for the first time in Mumbai with Sanjay Malhotra in the chair. The meeting put the revamped payments governance set-up into operation.

Key facts

  • PRB is a statutory authority through which the RBI regulates, supervises and enforces rules on payment and settlement systems.
  • Legal basis: Section 3, PSS Act, 2007.
  • Operational since 9 May 2025, replacing the BPSS.

Composition

RoleWho
ChairpersonRBI Governor
MemberRBI Deputy Governor in charge of payments
MembersCentral Government nominees
MembersIndependent experts in payments, fintech, cybersecurity, financial markets
MembersSenior officials from payment infrastructure bodies such as NPCI, UIDAI

Functions

  • Authorisation: grant, regulate, suspend or cancel approvals for UPI, card networks, wallets, RTGS/NEFT and prepaid instruments.
  • Standards: set technical, operational and cybersecurity rules.
  • Risk and consumer protection: systemic and settlement risk, data security, privacy, dispute resolution.
  • Enforcement: inspections, audits, binding directions, penalties.

Exam angle

  • PRB chair: RBI Governor; predecessor: BPSS.

Test yourself

1. Who chaired the first meeting of the Payments Regulatory Board in Mumbai?

The meeting was chaired by Sanjay Malhotra, the RBI Governor.

2. Which body did the Payments Regulatory Board replace?

PRB replaced the Board for Regulation and Supervision of Payment and Settlement Systems.

3. Under which Act's Section 3 is the Payments Regulatory Board established?

It is set up under Section 3 of the Payment and Settlement Systems Act, 2007.