Advisory Group to Regulatory Review Authority

In News 

Recently, the Reserve Bank constituted an advisory group to assist the second Regulatory Review Authority (RRA 2.0).

About Advisory Group

• It is representing members from regulated entities, including compliance officers, to support the RRA in achieving the objective set forth in the terms of reference of RRA 2.0.
  • It will be headed by SBI Managing Director.
• The advisory group will assist the RRA by identifying areas, regulations, guidelines, returns which can be rationalised and submit reports periodically to RRA containing the recommendations/suggestions.
• The advisory group has sought feedback and suggestions from all regulated entities, industry bodies, and other stakeholders by June 15 to undertake its preparatory work.

About Second Regulatory Review Authority (RRA 2.0)

• The RBI has set up the second Regulatory Review Authority (RRA 2.0), initially for a period of one year from May 01, 2021,(unless its tenure is extended by the RBI) with a view to streamlining regulations.
  • A similar authority (RRA 1.0) was set up by the RBI in April 1999 for one year for reviewing regulations, circulars, reporting systems based on the feedback from the public, banks and financial institutions.
• The RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process.
• Mandate
  • Review regulatory prescriptions internally as well as by seeking suggestions from RBI-regulated entities.
  • Make supervisory instructions more effective by removing redundancies and duplications.
  • Reduce compliance burden on regulated entities by streamlining the reporting mechanism.
  • Examine and suggest the changes required in the dissemination process of RBI circulars/instructions.
  • Revoking obsolete instructions if necessary and obviating paper-based submission of returns wherever possible.

Source: TH