RBI, central govt at loggerheads over proposed payments regulator

The central bank wrote two letters to the committee on May 22 and June 14 to argue that the banking regulator is best suited to regulate the payments space

India needs an independent payments regulator, said a government panel set up under the Department of Economic Affairs in a committee report examine the formation of a separate payments regulatory board. Reserve Bank of India, however, seems to be at odds with the structure of the proposed panel as it claimed that it is a natural function of a central bank to monitor and regulate payment systems in the country. 

In the committee report, all members unanimously voted for a complete overhaul of the payments and settlements act and put forward a draft Payment and Settlement System Bill, 2018 which