Another regulatory spat: Govt must insist on independent payments regulator

Following certain recommendations of an inter-ministerial committee, an element of controversy seems to be brewing over the location and leadership of the proposed regulator

An inter-ministerial committee set up by the Union government to examine the working and regulation of payments systems in India has submitted its recommendations to the finance ministry. The aim is to replace the Payment and Settlement Act, 2007, with an updated law, currently called the Payment and Settlement Services Bill. The committee’s draft has significantly streamlined the existing law, reducing the number of sections from 100 to 38 and cutting the number of possible actions by a regulator to just two. Overall, the broad thrust of the committee’s recommendations seems to be positive in this respect; a growing and