What’s in the news?
- The Reserve Bank of India has announced the setting up of a regulatory review authority, RRA 2.0, to review its regulations internally and in consultation with other stakeholders.
- 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 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.
About RRA 2.0
- The RRA 2.0 will function for a period of one year from the date of its establishment to review the regulatory prescriptions internally as well as by seeking suggestions from regulated entities and other stakeholders on their simplification and ease of implementation.
- 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.
- It will also be tasked with obtaining feedback from regulated entities on simplification of procedures and enhancement of ease of compliance. It will examine and suggest the changes required in the dissemination process of RBI circulars and instructions.