The Reserve Bank of India (RBI) has set up the Regulations Review Authority 2.0.
The authority will review regulatory prescriptions internally as well as by seeking suggestions from RBI-regulated entities for simplification and ease of implementation.
Deputy Governor M. Rajeshwar Rao has been appointed as the Regulations Review Authority. The authority would have validity for a period of one year from May 1, 2021, unless its tenure is extended by the RBI.
The RBI had set up a similar authority for one year from April 1,in 1999 for reviewing regulations, circulars, reporting systemsbased on the feedback from public, banks and financial institutions.
The recommendations enabled streamlining and increasing the effectiveness of several procedures, paving the way for issuance of master circular and reducing reporting burden on regulated entities, the RBI said.
“Considering the developments in regulatory functions of the Reserve Bank over the past two decades and evolution of the regulatory perimeter, it is proposed to undertake a similar review of the Reserve Bank’s regulations and compliance procedures with a view to streamlining/rationalising them and making them more effective. Accordingly, it has been decided to set up a new Regulations Review Authority (RRA 2.0),” it said.
The RRA 2.0 will focus on streamlining regulatory instructions, reduce compliance burden of the regulated entities by simplifying procedures and reduce reporting requirements, wherever possible.
Its mandate is to make regulatory and supervisory instructions more effective by removing redundancies and duplications, if any; to reduce compliance burden on regulated entities by streamlining the reporting mechanism; revoking obsolete instructions if necessary and obviating paper-based submission of returns wherever possible.
It will also obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance; examine and suggest the changes required in dissemination process of RBI circulars/ instructions; and identify any other issue germane to the subject matter.