RBI sets up regulatory review authority to review regulations

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

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Deputy Governor M Rajeshwar Rao has been appointed as the head of the RRA 2.0 which would be set up for a period of one year from May 1, 2021, unless its tenure is extended.

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.

The authority has been christened as such because it follows a similar exercise conducted in 1999-2000.

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.