The Reserve Financial institution of India (RBI) has arrange the Funds Regulatory Board (PRB) below the Cost and Settlement Techniques Act, 2007, following latest amendments notified by the federal government. The central financial institution confirmed the event in a press launch issued on Tuesday, September 30. In line with the RBI, the amendments to Part 3 of the Act, launched by the Finance Act, 2017, got here into impact on Might 9, 2025 after a Gazette notification was issued by the Division of Monetary Companies on Might 6. With this, the erstwhile Board for Regulation and Supervision of Cost and Settlement Techniques (BPSS), which operated as a committee of the RBI’s Central Board, stood dissolved.
Members of the brand new board
The Funds Regulatory Board has been constituted below Part 3(2) of the Act. It contains:
RBI Governor – Chairperson
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Deputy Governor accountable for cost and settlement programs – Member
Govt Director accountable for cost and settlement programs – Member
Secretary, Division of Monetary Companies – Member
Secretary, Ministry of Electronics and Info Expertise – Member
Aruna Sundararajan, retired IAS officer – Member
As well as, the Principal Authorized Adviser of the RBI will attend board conferences as a everlasting invitee, consistent with the Funds Regulatory Board Laws, 2025.
The shift from BPSS to the PRB marks a step in the direction of making a stronger and extra structured framework for India’s funds sector. The brand new board could have statutory powers below the amended legislation to authorise cost programs, regulate their functioning, and be sure that transactions stay safe, environment friendly and dependable.
Officers stated the devoted board will strengthen institutional oversight at a time when India is witnessing file progress in digital transactions. UPI alone processed greater than 13 billion funds in August 2025, reflecting the size of exercise that now requires shut supervision.
Background on BPSS
The BPSS was created in 2005 as a committee of the RBI’s Central Board to control and supervise cost and settlement programs. Nevertheless, as digital funds expanded quickly over the previous decade, the necessity for a extra empowered and impartial authority turned obvious. The Finance Act, 2017, offered the legislative foundation for this transition, although its provisions got here into impact solely this 12 months.
