The Reserve Bank on Tuesday constituted the six-member Payments Regulatory Board, which includes three central government nominees, to supervise the functioning of payment systems in the country. The panel is headed by the Governor.

The Payments Regulatory Board (PRB) replaces the Board for Regulation and Supervision of Payment and Settlement System (BPSS), a committee of the Central Board of the RBI.

The five-member BPSS was also headed by the RBI Governor, but does not include any government nominee. The other two RBI members on the PRB are Deputy Governor and Executive Director in-charge of the Payment and Settlement Systems.

Revised liquidity mgmt framework issued

The RBI on Tuesday announced that it will continue to use the overnight weighted average call rate (WACR) as the operating target of the monetary policy.

WACR is the average interest rate at which banks borrow and lend funds to each other for a short period, typically overnight, in the inter-bank call money market. Many times, banks borrow money for a very short time, primarily to manage day-to-day liquidity and meet regulatory norms. 

RBI eases norms for small biz loans, working capital loans to jewellers 

The RBI issued new guidelines for small business loans, increasing the lending flexibility for banks, in adjusting the additional interest or spread charged over the loan term. 

The RBI has also eased lending restrictions for businesses that depend on gold as a raw material.

Bank credit to industry slows to 6.5% in Aug 

Bank credit to industry grew at a slower pace of 6.5 per cent in August as against 9.7 per cent in the corresponding period last year, according to Reserve Bank data released on Tuesday.

The RBI has released data on sectoral deployment of bank credit for August 2025 collected from 41 select scheduled commercial banks (SCBs), accounting for about 95 per cent of the total non-food credit by all SCBs.

Scheme launched to reduce stock of unclaimed deposits 

The RBI on Tuesday announced a year-long incentive scheme for banks to reduce the volume of unclaimed deposits.

Under the 'Scheme for Facilitating Accelerated Payout' Inoperative Accounts and Unclaimed Deposits', banks will be eligible to get a differential payout depending on the period of an account remaining inoperative and the amount of deposits in it.