India Establishes Payments Regulatory Board for Digital Finance

The creation of the Payments Regulatory Board (PRB) marks a pivotal shift by involving both the RBI and government authorities. This collaborative regulatory model aims to enhance the resilience and reach of India’s payment systems. Ranadurjay Talukdar from EY India highlights that broader representation could unlock opportunities. This change shifts from exclusive RBI oversight to expanded government and industry participation.

“India 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 opportunities.” — Ranadurjay Talukdar, Partner and Payments Sector Leader, EY India

Pioneering a flexible regulatory framework, the PRB is expected to enhance investment in fintech. The focus is on inclusivity and consumer protection, potentially attracting global digital payments participation. The reform is not expected to have an immediate impact on crypto assets like ETH or BTC. The emphasis is on payment service providers and digital wallet operators, fostering innovation and ensuring systemic resilience.

The PRB’s formation follows the Supreme Court’s 2020 decision lifting the RBI’s crypto banking ban. Historical legislative moves have classified crypto for tax but not regulatory clarity. Experts suggest PRB’s framework could enhance global fintech participation in India, driven by past trends favoring inclusivity and consumer protection. This evolution aligns with global regulatory shifts in digital finance.