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Update: RBI releases ‘Report of the Regulations Review Authority 2.0’
Update: RBI releases ‘Report of the Regulations Review Authority 2.0’

June 30, 2022

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  • Backdrop

The Reserve Bank of India (RBI) had setup the Regulations Review Authority 2.0 (RRA 2.0) with the objective of reducing the compliance burden on regulated entities by streamlining the regulatory instructions and rationalising reporting requirements.

The RRA 2.0 had recommended withdrawal of 714 circulars. It had also recommended discontinuation/merger of online filing of 65 regulatory returns and creation of a new Regulatory Reporting link on the website of RBI.

Previously, the RBI had setup RRA 1.0 in April 1999 for review the regulations, circulars, reporting systems.

  • Key recommendations of the RRA 2.0

The RRA 2.0 broadly makes recommendations on ease of compliance, reduction of regulatory burden, rationalisation of reporting mechanism and streamlining of regulatory instructions and communications. The key recommendations include:

  • To address gaps in understanding, interpreting, and implementing the instructions, the regulatory instructions should contain a brief Statement of Object underlying the rationale for issuance of instructions. The instructions should be supplemented with FAQs / guidance notes and illustrations, wherever necessary.
  • Periodic review of existing regulations has been suggested for aligning them with evolving developments in the industry practices and financial landscape.
  • Based upon a comprehensive review of the returns being submitted by the REs, RRA 2.0 has recommended elimination of paper-based returns and has suggested periodic review of regulatory and supervisory returns filed by the REs at least once in three years to ascertain their relevance and periodicity.
  • Any ad hoc return introduced for capturing specific data should be prescribed with a sunset clause of not more than six months duration.
  • Further, RRA 2.0 has recommended that the Master Circulars may be updated in a time bound manner and may eventually be converted into Master Directions, wherever feasible. Regulatory instructions which have been repealed / withdrawn may be archived / stamped to avoid confusion amongst the REs / members of public.
  • All the contents posted on RBI website may be updated on real-time basis. The RBI website layout may be enhanced to make it more interactive and convenient for navigation.
  • All instructions on the RBI website may be categorised subject-wise, function-wise and based on category of regulated entities with the necessary linkages to relevant FAQs, consultative papers, Master Directions, etc.
  • RRA 2.0 has also recommended standard template for Master Direction and Circular as well as standardisation of the procedure for updating regulatory instructions going forward.

You can read our suggestions to the RRA 2.0 here.

For more information, kindly write to apurva@nasscom.in.


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Apurva Singh
Senior Policy Associate

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