A Regulations Review Authority (RRA) was initially set up by the Reserve Bank of India (RBI) 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. Its recommendations 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. Based on the developments in this regard, it was proposed to undertake a similar review of the RBI’s regulations and compliance procedures to streamline/rationalise them and make them more effective.
Thus, a new Regulations Review Authority (RRA 2.0) was set up for a period of one year from May 01, 2021 unless the tenure is extended by the RBI. The RRA 2.0 will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process. Shri M Rajeshwar Rao, Deputy Governor of RBI has been appointed as the Regulations Review Authority. The RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.
The functions of RRA 2.0 would be as follows:
- To make regulatory and supervisory instructions more effective by removing redundancies and duplications, if any;
- To reduce compliance burden on regulated entities by streamlining the reporting mechanism; revoking obsolete instructions if necessary and obviating paper-based submission of returns wherever possible;
- To obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance;
- To examine and suggest the changes required in dissemination process of RBI circulars/instructions (this would entail suggestions on the areas where the manner of issuing circulars, their updation and website linkages); and
- To identify any other issue germane to the subject matter.
Advisory Group to assist RRA 2.0
On May 07, 2021, the Reserve Bank of India (RBI) also constituted an advisory group, headed by SBI Managing Director, S Janakiraman, to assist the RRA 2.0, which will assist the RRA 2.0 by identifying regulations, guidelines, and returns that can be rationalised, and achieve the goal set forth in the terms of reference of RRA 2.0.
The group consists of T.T. Srinivasaraghavan (Former Managing Director and Non-Executive Director, Sundaram Finance), Gautam Thakur (Chairman, Saraswat Co-operative Bank), SubirSaha (Group Chief Compliance Officer, ICICI Bank), Ravi Duvvuru (President and CCO, Jana Small Finance Bank), and AbadaanViccaji (Chief Compliance Officer, HSBC India).
The group will submit reports periodically to RRA 2.0, containing the recommendations/suggestions.
© Spectrum Books Pvt Ltd.