RBI to set up Regulations Review Authority from May 1 for one year

RRA, set up to review/seek suggestions on simplification, ease of implementation of regulations, to be led by M Rajeshwar Rao

The Reserve Bank of India (RBI) on Thursday set up a new Regulations Review Authority (RRA 2.0) for a period of one year. The RRA will undertake a review of the central bank's regulations and compliance procedures for streamlining them and making them more effective. 

The RRA will be set up from May 1, 2021, for a period of one year, unless the timeline is extended by the RBI. M Rajeshwar Rao, Deputy Governor, RBI will be head of the Regulations Review Authority, the banking regulator said. 

It is to be noted that RBI had established an RRA back in April 1, 1999, for a period of one year to review the regulations, circulars, reporting systems, based on the feedback from the public, banks, and financial institutions.

According to RBI, the recommendations from the RRA helped them streamline and increases the effectiveness of several procedures, simplify regulatory prescriptions, pave the way for issuance of master circulars, and reduce the reporting burden on regulated entities.

Among the terms of reference of RRA 2.0, the RBI said it will be tasked with making regulatory and supervisory instructions more effective by removing redundancies and duplications, if any.

Also, the compliance burden on regulated entities also needs to be reduced and the RRA needs to revoking obsolete instructions wherever necessary. Its job will also entail obtaining feedback from regulated entities on simplification of procedures and enhancement of ease of compliance. 

Furthermore, the RRA will be tasked with examining and suggesting changes required in disseminating RBI circulars. The RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.