{"id":32562,"date":"2018-10-29T15:20:51","date_gmt":"2018-10-29T09:50:51","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32562"},"modified":"2018-10-29T15:20:51","modified_gmt":"2018-10-29T09:50:51","slug":"rbi-opposes-move-for-independent-payments-regulatory-board","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-opposes-move-for-independent-payments-regulatory-board\/","title":{"rendered":"RBI opposes move for independent Payments Regulatory Board"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/rbi-opposes-move-for-independent-payments-regulatory-board\/article25265883.ece\">RBI opposes move for independent Payments Regulatory Board<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<ol>\n<li>The Reserve Bank of India (RBI) has opposed the move to have an independent Payments Regulatory Board (PRB) as envisaged by the draft proposal for amendments to the Payment &amp; Settlement Systems Act, 2007.<\/li>\n<\/ol>\n<p><strong>Important Facts:<\/strong><\/p>\n<ol start=\"2\">\n<li><strong>About the Payments Regulatory Board (PRB) :<\/strong><\/li>\n<\/ol>\n<ul>\n<li>The Union Government in Budget 2017-18 has proposed creation of a six-member Payments Regulatory Board in the Reserve Bank of India (RBI) as part of bringing structural reforms in the payment ecosystem.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> Background:<\/strong><\/li>\n<\/ol>\n<ul>\n<li><strong>Ratan Watal committee for digital payments:<\/strong> It has recommended for an independent and separate entity from RBI to regulate payments and settlements system to give boost to digital payments.<\/li>\n<li>It has suggested that RBI\u2019s regulation must be kept only for SIPS (systemically important payment system).<\/li>\n<li>Moreover the draft report of the <strong>Inter-Ministerial Committee <\/strong>called for an independent payments regulator, with the chairperson to be appointed by the government in consultation with RBI which arose differences between RBI and Finance Ministry.<\/li>\n<li>The RBI also opposed the panel\u2019s recommendation to resolve payments cases through the Securities Appellate Tribunal.<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><strong>RBI\u2019s stand:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>According to the<strong> global practice<\/strong>, both the SIPS and retail payment systems are under the central bank for a variety of reasons.<\/li>\n<li>For example issues of <strong>inter-connectivity <\/strong>between the systems and the role of the central bank as the lender of last resort (LOLR).<\/li>\n<li>RBI has mooted a<strong> monetary-policy-committee-style structure for the PRB<\/strong>, where outcomes are decided independently, but implementation remains with the banking regulator i.e. RBI<\/li>\n<li>The central bank also argued that <strong>payments systems are a subset of currency <\/strong>and predominantly controlled by banks in India.<\/li>\n<li>Since both currency and banks fall under the purview of the RBI, it argued that control of payments systems should lie with the central bank itself.<\/li>\n<li>The central bank said that objectives for the PRB should not be mandated by law, as it will lack flexibility.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>RBI opposes move for independent Payments Regulatory Board News: The Reserve Bank of India (RBI) has opposed the move to have an independent Payments Regulatory Board (PRB) as envisaged by the draft proposal for amendments to the Payment &amp; Settlement Systems Act, 2007. Important Facts: About the Payments Regulatory Board (PRB) : The Union Government&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-opposes-move-for-independent-payments-regulatory-board\/\">Continue reading <span class=\"screen-reader-text\">RBI opposes move for independent Payments Regulatory Board<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-32562","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704913704},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=32562"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32562\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=32562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=32562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=32562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}