RBI sets up RRA 2.0 to review regulatory functions and reduce compliance burden, BFSI News, ET BFSI

The Reserve Bank of India (RBI) announced that it has decided to set up a new Review Authority (RRA 2.0). Initially, Regulations Review Authority (RRA) was established on April 1, 1999, for the purpose of reviewing regulations, circulars, and reporting systems based on public, bank, and financial institution feedback. RRA’s recommendations resulted in the simplification of regulatory prescriptions, the issuance of a master circular, reduction in the reporting burden on regulated entities and streamlined and improved processes.

RBI said that considering the developments in regulatory functions of the Reserve Bank and the evolution of the regulatory perimeter over the last two decades, it has been decided to set up a new Regulations Review Authority (RRA 2.0) for a period of one year from the date of its establishment. The Deputy Governor, M. Rajeshwar Rao, has been appointed the Regulations Review Authority. The Authority will be in place for a year starting May 1, 2021, unless the Reserve Bank decides to prolong its term.

RRA 2.0 would concentrate on streamlining regulatory instructions, reducing the compliance burden of the regulated entities by simplifying processes, and reducing reporting requirements. The RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.

The terms of reference of RRA would include removing redundancies and duplications from regulatory and supervisory instructions, reducing compliance burden on regulatory agencies by streamlining the reporting process and, if necessary, revoking obsolete instructions, and avoiding paper-based submission of returns wherever possible.