On May 2025, the Government of India, in collaboration with the Reserve Bank of India (RBI), announced the creation of the Payments Regulatory Board to oversee digital payments.
The establishment aims to introduce broader industry representation, foster innovation, and ensure global competitiveness in Indiaโs financial ecosystem. Initial market reactions are neutral as regulatory clarity emerges.
India Establishes Payments Regulatory Board with RBI
The Payments Regulatory Board (PRB) has been established, marking a significant shift in Indiaโs digital finance landscape. This new board, formed with RBIโs involvement, emphasizes regulatory oversight outside traditional RBI channels.
This formation indicates a power-sharing model between the Government of India and RBI. Collaborative governance involving senior Ministry of Finance officials represents a broader approach to digital payment policy-making.
PRB to Boost Innovation in Digital Payments
The PRBโs creation is expected to stimulate innovation and investment in digital payment infrastructure. However, immediate changes in cryptocurrency market behaviors remain neutral as the focus is primarily on fiat-related systems.
This move aligns with global trends aimed at enhancing the financial stability of payments systems. The PRB could provide clearer guidelines for future Central Bank Digital Currency (CBDC) implementation in India, fostering technological advances.
PRB: A Major Shift in Indiaโs Financial Policy
Similar reforms, such as the 2020 Supreme Court ruling lifting RBIโs crypto service ban, highlight Indiaโs evolving financial policies. International models like the UKโs financial boards underscore the potential for innovation.
Experts from Kanalcoin suggest that broader regulatory frameworks can drive industry growth, echoing global practices. The PRB has the potential to significantly influence Indiaโs digital finance future by creating a resilient ecosystem.
Ranadurjay Talukdar, Partner and Payments Sector Leader, EY India, โ โIndia has never seen payments regulated outside the RBI. RBI oversight has historically ensured systemic resilience and consumer safety. But broader representation in the PRB could unlock new opportunitiesโ
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