RBI establishes authority to review rules

The Reserve Bank of India (RBI) has established the Regulation Review Authority 2.0.

The authority will review regulatory prescriptions internally as well as seeking suggestions from RBI-regulated entities for simplification and ease of implementation.

Deputy Governor M. Rajeshwar Rao has been appointed as the Regulation Review Authority. The authority shall have validity for a period of one year from May 1, 2021, until its term is extended by the RBI.

The Reserve Bank of India established a uniform authority to review rules, circulars, reporting systems on feedback from the public, banks and financial institutions for a year from 1 April.

The RBI said the recommendations have helped in streamlining and increasing the effectiveness of several processes, which paves the way for issuing master circulars and reducing the reporting burden on regulated entities.

“Considering the developments in the regulatory functions of the Reserve Bank of India and the development of the regulatory periphery over the past two decades, it is proposed to conduct a uniform review of the Reserve Bank’s rules and compliance procedures to reserve / rationalize and make them . more effective. Accordingly, it has been decided to establish a new Regulation Review Authority (RRA 2.0).

RRA 2.0 will focus on streamlining regulatory directives, reducing the compliance burden of regulated entities by simplifying procedures and, wherever possible, reducing reporting requirements.

Its mandate is to make regulatory and supervisory directives more effective by removing redundancy and duplication, if any; Reducing compliance burden on regulated entities by streamlining reporting mechanisms; If necessary, cancellation of indirect instructions and wherever possible reduce paper-based deposits.

It will also seek feedback from regulated entities on simplification of procedures and increasing ease of compliance; Examining and suggesting necessary changes in the process of dissemination of RBI circulars / instructions; And identify any other issue issues for the subject.