Business Standard

Why the govt and RBI are at odds over setting up a payments regulator

Creation of another regulator for payments has its own challenges, especially lack of expertise. Such a body can also become playground for senior bureaucrats looking for sinecures post retirement


Ankur BhardwajIshan Bakshi New Delhi
On October 19, the Reserve Bank of India released an unusual press release. The press release was a dissent note on a draft report submitted by an inter-ministerial committee. The committee had made recommendations regarding the setting up of an independent Payments Regulatory Board (PRB) and various facets related to such a regulatory body. The RBI’s strong dissent note parsed through the committee’s recommendations and brought out a point-by-point counter view.

The main points of contention between the RBI and the committee’s recommendations were:
  1. PRB to be an independent regulator
  2. Need to have non banks get access to and participate

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First Published: Oct 31 2018 | 12:14 PM IST

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