The Reserve Bank of India (RBI) on Thursday announced the setting up of a regulatory assessment authority, RRA 2., to assessment its regulations internally and in consultation with other stakeholders.
The authority has been christened as such due to the fact it follows a comparable workout performed 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.
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 monetary institutions. The suggestions of the RRA enabled streamlining and rising the effectiveness of many procedures, simplifying regulatory prescriptions, paved the way for issuance of master circulars and decreased reporting burden on regulated entities, the RBI mentioned.
“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 mentioned in a statement.
Accordingly, the RRA 2. will function for a period of one year from the date of its establishment to assessment the regulatory prescriptions internally as properly as by looking for ideas from regulated entities and other stakeholders on their simplification and ease of implementation.
The RRA 2. will concentrate on streamlining regulatory directions and minimizing the compliance burden of regulated entities by simplifying procedures and minimizing reporting needs, wherever feasible. It shall intend to make regulatory and supervisory directions more productive by removing redundancies and duplication, if any. It will look to lessen the compliance burden on regulated entities by streamlining the reporting mechanism, revoking obsolete directions if important and obviating paper-based submission of returns wherever feasible.
It will also be tasked with getting feedback from regulated entities on simplification of procedures and enhancement of ease of compliance. It will examine and recommend the alterations needed in the dissemination approach of RBI circulars and directions.