Finance minister Arun Jaitley on Wednesday proposed creation of a six-member Payments Regulatory Board in the RBI, headed by its governor, for bringing about structural reforms in the payment ecosystem.
For the purpose, necessary amendments are proposed in the Finance Bill 2017 to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems.
In his budget speech, Jaitley said a committee on digital payments constituted by then Department of Economic Affairs has recommended structural reforms in the payment ecosystem, including amendments to the Payment and Settlement Systems Act, 2007.
He said government will undertake a comprehensive review of this act and bring about appropriate amendments.
“To begin with, it is proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems,” the finance minister said.
As per the Finance Bill, the Reserve Bank will be the designated authority for the regulation and supervision of payment systems.
The RBI governor will be chairperson, ex officio. The deputy governor who is in-charge of the Payment and Settlement Systems’ member, and one officer of the Reserve Bank to be nominated by its Central Board will be its members.
The central government will also nominate three members to the board.