The Reserve Bank of India (RBI) on Thursday introduced the organising of a regulatory overview authority, RRA 2.0, to overview its rules internally and in session with different stakeholders.
The authority has been christened as such as a result of it follows an analogous train performed in 1999-2000. Deputy governor M Rajeshwar Rao has been appointed as the top of the RRA which might be arrange for a interval of 1 yr from May 1, 2021, except its tenure is prolonged.
The central financial institution had arrange an RRA initially for a interval of 1 yr from April 1, 1999 for reviewing the rules, circulars, reporting programs, primarily based on the suggestions from public, banks and monetary establishments. The suggestions of the RRA enabled streamlining and growing the effectiveness of a number of procedures, simplifying regulatory prescriptions, paved the way in which for issuance of grasp circulars and lowered reporting burden on regulated entities, the RBI stated.
“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 stated in an announcement.
Accordingly, the RRA 2.Zero will perform for a interval of 1 yr from the date of its institution to overview the regulatory prescriptions internally in addition to by searching for options from regulated entities and different stakeholders on their simplification and ease of implementation.
The RRA 2.Zero will concentrate on streamlining regulatory directions and decreasing the compliance burden of regulated entities by simplifying procedures and decreasing reporting necessities, wherever potential. It shall intend to make regulatory and supervisory directions more practical by eradicating redundancies and duplication, if any. It will look to scale back the compliance burden on regulated entities by streamlining the reporting mechanism, revoking out of date directions if needed and obviating paper-based submission of returns wherever potential.
It can even be tasked with acquiring suggestions from regulated entities on simplification of procedures and enhancement of ease of compliance. It will study and recommend the adjustments required within the dissemination technique of RBI circulars and directions.