RBI opposes creation of an independent regulator for payments system

The central bank argued that payments systems are a subset of currency and predominantly controlled by banks in India

The Reserve Bank of India (RBI) has opposed the creation of an independent payments regulator, which was recommended by a committee set up by the government. The central bank has sought to retain control of payment companies with itself, through a dissent note placed on the RBI website.

“The Payments Regulatory Board (PRB) must remain with the Reserve Bank and headed by the Governor of the RBI. It may comprise three members nominated by the Government and RBI respectively, with a casting vote for the Governor to ensure smooth operations of the Board,” said RBI’s note. The RBI added that the