Regulations Review Authority | 14 Jun 2022

Why in News?

The Regulations Review Authority of the Reserve Bank of India (RBI) has recommended withdrawal of 714 regulatory instructions which have either become obsolete or redundant.

  • This is part of the RRA 2.0 recommendations on issues such as,
    • Ease of compliance,
    • Reduction of regulatory burden
    • Rationalization of reporting mechanism,
    • Streamlining instructions and communication.

What are the Recommendations of the RRA?

  • Complete elimination of paper-based returns and has identified 65 regulatory returns which should either be discontinued or merged with other returns or should be converted into online returns.
  • The Review and revocation of time-barred and old regulations may be taken up for alignment with the recent circulars and this exercise can be institutionalised in such a manner that only the current and updated instructions are available in public domain.
  • It has proposed a periodic review of regulatory or supervisory returns at least once in three years.
  • A separate web page, namely, ‘Regulatory Reporting’ in the RBI website so that all the information relating to regulatory, supervisory and statutory returns would be consolidated at a single source on the RBI website.

What is the Regulations Review Authority?

  • Background:
    • The RBI earlier set up the first RRA for a period of one year from 1st April, 1999.
    • This is for reviewing the regulations, circulars, reporting systems, based on the feedback from the public, banks and financial institutions.
  • RRA 2.O:
    • RRA 2.0 seeks to streamline the regulatory instructions, reducing the compliance burden of the entities under regulations. The RRA 2.0 will achieve this by simplifying procedures and reducing reporting requirements wherever possible.
    • The RBI had set up RRA 2.0 in 2021 year to reduce the compliance burden on the regulated entities and streamline regulatory instructions.
  • Terms of Reference of RRA 2.0:
    • Making regulatory and supervisory instructions more effective by removing redundancies and duplications.
    • To obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance.
    • RRA will reduce the compliance burden on regulated entities by streamlining the reporting mechanism; revoking obsolete instructions if necessary.
    • To examine and suggest the changes required in the dissemination process of RBI circulars/ instructions.
    • To engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.

Source: IE