RBI sets up RRA 2.0 to review regulatory functions, ease compliance burden

The Reserve Bank of India (RBI) on Thursday said it has decided to set up a new Regulations Review Authority (RRA 2.0) for a period of one year to review the regulatory prescriptions internally. The authority will also seek suggestions from the RBI regulated entities and other stakeholders on their simplification and ease of implementation, the RBI said.

The RBI has appointed Rajeshwar Rao, Deputy Governor as the Regulations Review Authority. The Authority would be set up for a period of one year from May 01, 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. 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, the RBI said.

The RBI had first set up an RRA 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 circular and reduced reporting burden on regulated entities, the RBI said.

The terms of reference of RRA 2.0 would include making regulatory and supervisory instructions more effective by removing redundancies and duplications, reducing compliance burden on regulated entities by streamlining the reporting mechanism and revoking obsolete instructions, if necessary, and obviating paper-based submission of returns wherever possible, the RBI said.

The authority will also seek 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, the RBI said.