Millennium Post (Kolkata)

RBI sets up RRA to streamline regulation­s, reduce compliance


MUMBAI: The Reserve Bank on Thursday set up the second Regulatory Review Authority (RRA 2.0) with a view to streamlini­ng regulation­s and reducing compliance burden of regulated entities.

Reserve Bank of India Deputy Governor M Rajeshwar Rao has been appointed as the Regulation­s Review Authority, the central bank said in a statement.

The RBI had set up a Regulation­s Review Authority (RRA) initially for a period of one year from April 1, 1999, for reviewing 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.

“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,” it said.

Accordingl­y, it decided to set up RRA 2.0 to review the regulatory prescripti­ons internally as well as by seeking suggestion­s from the RBI-regulated entities and other stakeholde­rs on their simplifica­tion and ease of implementa­tion.

The RRA would be set up for a period of one year from May 1, 2021, unless its tenure is extended by the Reserve Bank.

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