RBI's Payments Regulatory Board Holds Inaugural Meeting in Mumbai

1 min read Updated on 06 Jan 2026, 06:15 AM

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Jubin VScanX News Team

AI Summary

The Reserve Bank of India's Payments Regulatory Board conducted its first meeting in Mumbai, chaired by Governor Sanjay Malhotra, marking the operationalization of India's new payment system regulatory framework. The board reviewed the draft Payments Vision 2028, examined payment system functions, and discussed key focus areas across domestic and global payment landscapes to enhance regulatory oversight.

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The Reserve Bank of India's newly constituted Payments Regulatory Board held its inaugural meeting in Mumbai on Monday, January 5, marking a significant milestone in India's payment system governance. The meeting was chaired by Governor Sanjay Malhotra and brought together key stakeholders to operationalize the new regulatory framework for payment systems.

Strategic Vision and Regulatory Framework

The board meeting focused extensively on reviewing the draft Payments Vision 2028, providing strategic guidance to further develop India's payment ecosystem. This vision comes at a crucial time as India's digital payments sector anticipates unprecedented growth, with PwC projecting transaction volumes to nearly triple by FY30. The Payments Regulatory Board was established following amendments to the Payment and Settlement Systems Act, 2007, which came into effect in May 2025.

Key Meeting Highlights:	Details
Vision Document:	Draft Payments Vision 2028
Growth Projection:	Transaction volumes to triple by FY30
Meeting Chair:	Governor Sanjay Malhotra
Location:	Mumbai
Date:	January 5

Comprehensive Review and Analysis

During the meeting, members conducted a thorough review of the functions of the Department of Payment and Settlement Systems. The session examined both domestic and global payment landscapes, ensuring India's regulatory approach remains aligned with international best practices while addressing local market needs. The board discussed key focus areas across domestic and global payment systems to enhance the regulatory framework.

Meeting Participants:	Designation
S Krishnan:	Secretary, Ministry of Electronics and IT
Nagaraju Maddirala:	Secretary, Department of Financial Services
Aruna Sundararajan:	IAS
T Rabi Sankar:	Deputy Governor, RBI
Vivek Deep:	Executive Director, RBI

Digital Payments Survey and Future Outlook

The meeting featured key findings from RBI's recent Survey on Digital Payments, which provided valuable insights into usage patterns and adoption trends across the country. These findings will inform policy decisions and help shape the regulatory framework to support continued growth in digital payment adoption. The Payments Regulatory Board is expected to play a central role in shaping India's payment systems, with a focus on enhancing efficiency, security, and innovation while maintaining the stability and integrity of the payment ecosystem.

Auction Details

The upcoming repo auction carries specific operational parameters that highlight its significance in the current monetary policy framework.

Parameter:	Details
Auction Amount:	₹1 trillion
Auction Date:	January 2
Tenure:	5 days
Rate Type:	Variable

Repo Auction Mechanism

The variable rate repo auction represents a key monetary policy tool used by the RBI to inject liquidity into the banking system. Under this mechanism, banks can borrow funds from the central bank by pledging government securities as collateral. The 5-day tenure indicates a short-term liquidity injection designed to address immediate funding requirements in the banking system.

Market Implications

The ₹1 trillion auction size demonstrates the scale of liquidity management operations undertaken by the RBI. Such repo auctions serve as an important channel for the central bank to influence money market conditions and ensure adequate liquidity availability for banks. The timing of the auction on January 2 positions it strategically at the beginning of the new year, potentially addressing seasonal liquidity patterns in the banking system.