The Reserve Bank of India (RBI) has issued a new Notification establishing the Payments Regulatory Board Regulations, 2025, which came into force on May 20, 2025. These regulations supersede the earlier Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008. The new rules, enacted under the Payment and Settlement Systems Act, 2007, define the composition of the Payments Regulatory Board, outlining the eligibility, tenure, and resignation procedures for nominated members, including age limits and disqualifications for those over 70, Members of Parliament, or individuals convicted of serious offenses. The regulations also mandate a Code of Conduct for all board members and invitees, emphasizing integrity, conflict of interest disclosure, and confidentiality of information. The Board will be assisted by the Department of Payment and Settlement Systems, meet at least twice annually, and requires a quorum of three members including the Chairperson or a designated Deputy Governor. The Board also has the authority to delegate powers and constitute committees as needed.
RESERVE BANK OF INDIA
NOTIFICATION
Mumbai, the 20th May, 2025
Notification No. CO.DPSS.BD.No.S168 /02-01-012/2025-2026.—In pursuance of sub-section (4) of section 3 read with sub-sections (1) and (2) of section 38 of the Payment and Settlement Systems Act, 2007 (51 of 2007), and in supersession of the Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008, the Reserve Bank hereby publishes the annexed Payments Regulatory Board Regulations, 2025 which shall come into force from the date mentioned above.
VIVEK DEEP, Executive Director
[ADVT.-III/4/Exty./112/2025-26]
ANNEX
Payments Regulatory Board Regulations, 2025
In exercise of the powers conferred by sub-section (4) of section 3 read with sub-sections (1) and (2) of Section 38 of the Payment and Settlement Systems Act, 2007 (51 of 2007), the Reserve Bank of India hereby makes the following regulations, namely: –
1. Short title and commencement –
(1) These Regulations may be called the “Payments Regulatory Board Regulations, 2025”.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions –
(1) In these regulations, unless, the context otherwise requires –
(a) ‘Act’ means the Payment and Settlement Systems Act, 2007 (51 of 2007);
(b) ‘Bank’ means the Reserve Bank of India constituted by the Reserve Bank of India Act, 1934 (2 of 1934);
(c) ‘Board’ means the Payments Regulatory Board constituted under sub-section (2) of Section 3 of the Act;
(d) ‘Central Board’ means the Central Board of Directors of the Reserve Bank of India constituted under Section 8 of the Reserve Bank of India Act,1934 (2 of 1934);
(e) ‘General Regulations’ means the Reserve Bank of India General Regulations, 1949 made under the Reserve Bank of India Act, 1934 (2 of 1934);
(f) ‘Member’ means a member of the Board;
(2) All other words and expressions used herein and not defined, but defined in the Act or the Reserve Bank of India Act, 1934 (2 of 1934) shall have the meanings respectively assigned to them in those Acts.
3. Composition of Board –
(1) The composition of the Board shall be as specified in section 3 of the Act.
(2) The Board may invite persons with experience in the fields of payment and settlement systems, information technology, law, etc., to attend its meeting either as permanent or as ad hoc invitees and the Principal Legal Adviser of the Bank shall be a permanent invitee to the meetings of the Board.
4. Eligibility and Tenure of members nominated under section 3 (3) (d) of the Act –
(1) The Members of the Board referred to in clause (d) of sub-section (3) of section 3 of the Act shall be nominated from amongst persons of ability, integrity and standing, having knowledge, experience and expertise in the field of payment systems, information technology including cyber security, law, etc., by the Central Government:
Provided that no person shall be nominated as a Member, in case such person––
(a) has completed the age of seventy years on the date of appointment as Member;
(b) is a Member of Parliament or any State Legislature;
(c) has been at any time, adjudged as an insolvent;
(d) has been convicted of an offence which is punishable with an imprisonment for a term of one hundred and eighty days or more;
(e) is physically or mentally incapable of discharging the duties of a Member of the Board; or
(f) has a material conflict of interest with any other payment system and is unable to resolve such conflict.
(2) A Member of the Board nominated under clause (d) of sub-section (3) of section 3 of the Act, unless he is a public servant as defined in sub-section 28 of section 2 of the Bharatiya Nyaya Sanhita, 2023, shall hold office for a period of four years and shall not be eligible for re-nomination.
(3) A Member of the Board nominated under clause (d) of sub-section (3) of section 3 of the Act, unless he is a public servant as defined in sub-section 28 of section 2 of the Bharatiya Nyaya Sanhita, 2023, may resign from the Board, at any time before the expiry of his tenure under sub-regulation (2), by giving to the Central Government, a written notice of not less than six weeks, and on the acceptance of the resignation by the Central Government, he shall cease to be a Member of the Board.
5. Assistance to the Board –
The Board shall be assisted by the Department of Payment and Settlement Systems (DPSS), Reserve Bank of India which shall report to the Board.
6. Code of Conduct for Board Members –
(1) Every Member, referred to in sub-section (3) of section 3 of the Act, and permanent or ad hoc invitee, referred to in sub-regulation (2) of regulation 3, of the Board shall sign a declaration as per the Schedule.
(2) The following code aims at providing broad guidance to Members of the Board on their ethical conduct, which shall help enhance public trust and confidence in the Bank and its policies.
(a) Members shall act in a manner consistent with the integrity, dignity and reputation of their office.
(b) Members shall disclose any conflict of interest with regard to any matter that comes up for decision or otherwise to the Board and, if necessary, recuse themselves from the specific proceedings.
(c) Members shall ensure that all information received by them as a Member of the Board shall be kept confidential and shall not be revealed to any person either knowingly or unknowingly.
(d) Members shall maintain the highest standards of probity, consistent with public office.
(3) Every Member shall be indemnified by the Bank against all losses and expenses incurred in discharging assigned duties, except such as may happen from his/her own willful act or default.
7. Vacation of Office –
A Member nominated under clause (d) of sub-section (3) of section 3 of the Act shall cease to hold office if he absents himself without the leave of the Chairperson from three consecutive meetings of the Board.
8. Powers on behalf of the Board by whom to be exercised –
The Board may, by general or special order, delegate any or all its powers or functions to the Chairperson or a Member of the Board or a Sub-Committee of the Board or officer(s) of the Bank as it may deem fit and necessary for the efficient administration of the functions of the Board, subject to such conditions and limitations, if any, as it may specify in the order.
Provided that any order of delegation previously approved by the Board for Regulation and Supervision of Payment and Settlement Systems1 shall continue to be valid even after these Regulations come into force unless amended or rescinded by the Board.
9. Meetings of the Board and Quorum –
(1) The Board shall ordinarily meet at least twice in a year at such place or through such mode as may be decided by the Chairperson from time to time.
(2) Members shall be given sufficient notice to enable them to attend the meetings.
(3) The quorum for holding a meeting of the Board shall be three Members and shall include the Chairperson and in his absence, the Deputy Governor who is the Member of the Board and a Member nominated under clause (d) of sub-section (3) of section 3 of the Act.
(4) The meetings of the Board shall be presided over by the Chairperson, and in his absence by the Deputy Governor who is a Member of the Board.
(5) Each Member of the Board shall have one vote.
(6) All matters for approval which come up during any meeting of the Board shall be decided by a majority of votes of the Members present and voting, and in the event of an equality of votes, the Chairperson, or in his absence, the Deputy Governor who is a Member of the Board, shall have a second or casting vote.
(7) If the Chairperson so directs, an item of business or issue which requires a decision of the Board, may be referred to Members by circulation and such item may be decided by a majority of votes of Members, and in the event of an equality of votes, the Chairperson, or in his absence, the Deputy Governor who is a Member of the Board, shall have a second or casting vote.
(8) The Chairperson shall, on a request made in writing by any Member of the Board, convene a meeting of the Board at such place or through such mode as he may decide.
(9) The proceeding of the Board shall be confidential.
10. Constitution of Committees –
(1) The Board may constitute Committee(s) for providing assistance or advice in the performance of its functions, as may be considered necessary from time to time.
(2) A Committee shall have the power to invite persons with experience in the field of payment and settlement systems to attend the meetings of that Committee as invitees.
11. Remuneration and other allowances payable to the members or invitees –
Members nominated under clause (d) of sub-section (3) of section 3 of the Act to the Board, Members nominated under sub-regulation (1) of regulation 10 to any Committee, and invitees to the Board or any Committee shall be entitled to remuneration for each meeting they attend, and expenses relating to travel, transportation, lodging and boarding, as may be decided by the Board from time to time.
SCHEDULE
(vide Regulation 6)
FORM OF DECLARATION OF FIDELITY AND SECRECY
I, on becoming a member of the Board or being invited as permanent or ad hoc invitee, do solemnly and sincerely declare that I will faithfully perform the duties to the best of my ability and that I will uphold the dignity of the position and that I will observe secrecy and will not directly or indirectly communicate or divulge any of the matters or any information which may come to my knowledge in the discharge of my duties, except when required or authorised to do so by these Regulations or by law.
(Signature)
Note:
1. Subs. by Finance Act 2017, s. 152 (w.e.f 9-05-2025).
