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What is the News?
Recently, the Reserve Bank of India(RBI) announced the setting up of a new Regulations Review Authority(RRA 2.0).
About Regulations Review Authority(RRA):
- The RBI earlier set up the first RRA for a period of one year from April 1, 1999. This is for reviewing the regulations, circulars, reporting systems, based on the feedback from the public, banks and financial institutions.
About Regulations Review Authority(RRA 2.0):
- Regulations Review Authority(RRA 2.0) will streamline the regulatory instructions, reduce the compliance burden of the entities under regulations. The RRA 2.0 will achieve this by simplifying procedures and reduce reporting requirements wherever possible.
- Headed by: M Rajeshwar Rao, Deputy Governor of RBI has appointed as the head of the Regulations Review Authority 2.0.
- Duration: The authority will be set up for a period of one year from May 1. But, RBI can extend its tenure.
Terms of Reference of RRA 2.0: The terms of reference of RRA 2.0 include:
- Firstly, making regulatory and supervisory instructions more effective by removing redundancies and duplications.
- Secondly, to obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance.
- Thirdly, RRA will reduce the compliance burden on regulated entities by streamlining the reporting mechanism; revoking obsolete instructions if necessary.
- Fourthly, to examine and suggest the changes required in the dissemination process of RBI circulars/ instructions.
- Sixthly, to engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.
Source: The Hindu