The International Financial Services Centres Authority (IFSCA) has constituted the Payments Regulatory Board (PRB) under the Payment and Settlement Systems Act, 2007 (PSS Act), following amendments brought into effect on May 9, 2025, through the Finance Act, 2017. The amendment replaced the earlier Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) with the PRB, through which IFSCA will now exercise regulatory powers over payment and settlement systems within its jurisdiction.
The PRB has been set up under Section 3(2) of the PSS Act, 2007, and includes the following members: Chairperson of IFSCA (Chairperson of the PRB), a Whole-Time Member of IFSCA, Head of Department for Banking Regulation and Development at IFSCA, a representative from the Department of Financial Services (Joint Secretary/Economic Advisor in Cyber Security and Fintech), the CEO of the Unique Identification Authority of India (UIDAI), and the MD & CEO of the National Payments Corporation of India (NPCI).
In its first meeting on October 1, 2025, the PRB approved the authorisation of CCIL IFSC Limited to operate a Foreign Currency Settlement System in the International Financial Services Centre (IFSC). This system, approved under Section 7(1) of the PSS Act, 2007, will function as a real-time gross settlement (RTGS) system for foreign currency transactions.
The creation of the PRB marks a key structural change in payment system governance under IFSCA, aligning it with the broader regulatory framework introduced by the Finance Act, 2017.
International Financial Services Centres Authority (IFSCA)
PRESS RELEASE
Constitution of the Payments Regulatory Board
1. The amendments to Section 3 of the Payment and Settlement Systems Act, 2007 (PSS Act, 2007) undertaken through the Finance Act 2017 has been brought into effect from May 9, 2025, with the issue of the Gazette Notification dated May 06, 2025, by Department of Financial Services, Government of India. As a result of such amendment, the erstwhile Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) has been replaced with the Payments Regulatory Board as the body through which the International Financial Services Centres Authority (IFSCA) shall exercise the powers, perform the functions and discharge the duties conferred on it under the PSS Act, 2007.
2. The Payments Regulatory Board for IFSCA has been constituted under Section 3 (2) of PSS Act, 2007, consisting of the following members:
| Members of the Payments Regulatory Board appointed / nominated under PSS Act, 2007 | |||
| Section of the PSS Act, 2007 | Sr. No | Name | |
| 3 (3) (a) | 1 | Chairperson, IFSCA | Chairperson |
| 3 (3) (b) | 2 | Whole Time Member, IFSCA | Member |
| 3 (3) (c) | 3 | Head of Department, Department of Banking Regulation and Development, IFSCA | Member |
| 3 (3) (d) | 4 | Joint Secretary/ Economic Advisor, Cyber Security and Fintech, Department of Financial Services | Member |
| 5 | Chief Executive Officer, Unique Identification Authority of India | Member | |
| 6 | Managing Director and Chief Executive Officer, National Payments Corporation of India | Member | |
3. In the first meeting of the PRB held on 1.10.2025, the PRB approved the authorisation to CCIL IFSC Limited under the provisions of sub-section 1 section 7 of the Payment and Settlement Systems Act, 2007 to operate a real time gross settlement system called the Foreign Currency Settlement System in IFSC.
October 1, 2025
Source: www.taxguru.in