In a significant step towards modernizing India’s digital finance system, the Indian government has established the Payments Regulatory Board (PRB), effective May 2025. This new body merges powers between the Reserve Bank of India and central authorities, aiming to reform the country’s digital payment landscape. This shift in regulatory oversight seeks to enhance the resilience and accessibility of India’s payment systems while encouraging investment in fintech and digital infrastructure.
The PRB is a landmark development as it introduces collaborative regulation, involving both the RBI and government authorities. This structure aims to bolster the robustness and reach of India’s payment systems. Ranadurjay Talukdar, Partner and Payments Sector Leader at EY India, believes this change could unlock new opportunities for growth by expanding representation beyond the traditional RBI oversight.
The PRB is expected to foster investment in fintech through a flexible regulatory framework, prioritizing consumer protection and inclusivity. This reform aims to attract global digital payments participation, with the emphasis on payment service providers and digital wallet operators. The changes are not anticipated to have an immediate impact on crypto assets such as ETH or BTC.
The PRB’s creation follows the Supreme Court’s 2020 decision to lift the RBI’s ban on crypto banking, marking a pivotal shift in regulatory clarity. This has led to speculation about the potential for India to become a global hub for fintech innovation and investment. Global trends suggest that the PRB’s framework could further boost India’s position within the international digital finance ecosystem.
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