RRA 2.0: RBI sets up regulatory review authority to review regulations, ease compliance

RRA 2.0: RBI sets up regulatory review authority to review regulations, ease compliance

The central bank had set up an RRA initially for a period of one year from April 1, 1999 for reviewing the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions.The central bank had set up an RRA initially for a period of one year from April 1, 1999 for reviewing the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions.

The Reserve Bank of India (RBI) on Thursday announced the setting up of a regulatory review authority, RRA 2.0, to review its regulations internally and in consultation with other stakeholders.

The authority has been christened as such because it follows a similar exercise conducted in 1999-2000. Deputy governor M Rajeshwar Rao has been appointed as the head of the RRA which would be set up for a period of one year from May 1, 2021, unless its tenure is extended.

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The central bank had set up an RRA initially for a period of one year from April 1, 1999 for reviewing the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions. The recommendations of the RRA enabled streamlining and increasing the effectiveness of several procedures, simplifying regulatory prescriptions, paved the way for issuance of master circulars and reduced 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,” the RBI said in a statement.

Accordingly, the RRA 2.0 will function for a period of one year from the date of its establishment to review the regulatory prescriptions internally as well as by seeking suggestions from regulated entities and other stakeholders on their simplification and ease of implementation.

The RRA 2.0 will focus on streamlining regulatory instructions and reducing the compliance burden of regulated entities by simplifying procedures and reducing reporting requirements, wherever possible. It shall intend to make regulatory and supervisory instructions more effective by removing redundancies and duplication, if any. It will look to reduce the 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 be tasked with obtaining feedback from regulated entities on simplification of procedures and enhancement of ease of compliance. It will examine and suggest the changes required in the dissemination process of RBI circulars and instructions.

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