The Reserve Bank of India’s Regulations Review Authority (RRA 2.0) has constituted a six-member Advisory Group headed by S Janakiraman, Managing Director, State Bank of India.
About the Regulations Review Authority (RRA) and RRA 2.0
- The Reserve Bank of India set up a Regulations Review Authority (RRA) for a period of one year from April 1, 1999.
- Function: It was set up to review 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.
- Regulations Review Authority (RRA 2.0): Considering the developments in regulatory functions, it is proposed to undertake a similar review of the Reserve Bank’s regulations and compliance procedures and a new Regulations Review Authority (RRA 2.0) is set up.
- Appointment: Shri M. Rajeshwar Rao, Deputy Governor has been appointed as the Regulations Review Authority.
- Time period: The Authority would be set up for a period of one year from May 01, 2021, unless its tenure is extended by the Reserve Bank.
Functions of RRA 2.0
The terms of reference of RRA 2.0 would be as under:
- To make the regulatory and supervisory instructions effective by removing redundancies and duplications.
- To reduce compliance burden on regulated entities by streamlining the reporting mechanism and revoking obsolete instructions.
- To obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance;
- To examine and suggest the changes which are required in dissemination process of RBI circulars/ instructions.
- To help to Identify any other issue important to the subject matter.
What the advisory group is expected to do?
- It aims to support in reviewing the central bank’s regulations and compliance procedures.
- The group will work to streamline or rationalise the regulations to make them more effective.
- The Group will assist the RRA in identifying areas/ regulations/ guidelines/ returns that can be rationalised.
- It will also submit periodic reports to RRA which will contain the recommendations or suggestions for effective functioning.
- The Group will also invite feedback and suggestions from all regulated entities, industry bodies and other stakeholders.