Board for Payment and Settlement Systems

In 2005, RBI constituted the Board for Payment and Settlement Systems (BPSS) as a Committee of its Central Board. The functions are to regulate and supervise the payment and settlement systems. This is also chaired by the Governor of RBI and its members are all the four Deputy Governors and two Non-Official Directors of the Central Board.

Key Functions of BPSS are:

• Lay down policies relating to the regulation and supervision of all types of payment and settlement systems.
• Set standards for existing and future systems
• Approve criteria for authorization of payment and settlement systems
• Determine criteria for membership to these systems, including continuation, termination and rejection of membership.

With regard to the payment and settlement systems, BPSS is the highest policy making body in the country. Electronic, non-electronic, domestic and cross-border payment and settlement systems which affect the domestic transactions are regulated by BPSS.