The Reserve Bank of India (RBI, RBI) has decided to set up a new Regulation Review Authority- RRA 2.0 for an internal review of its regulatory functions. This review authority will be constituted for a year which will come into effect from May 1, 2021. RBI Deputy Governor Rajeshwar Rao (Deputy Governor Rajeshwar Rao) has been appointed as the head of the Regulation Review Authority.
While RRA 2.0 will review the rules of the Reserve Bank, it will simplify the RBI rules and make their implementation easier and practical by taking advice from the regulated companies and other stakeholders by the RBI. Along with this, RRA 2.0 will also help in reducing the burden of compliance with regulations of Compliance Burden of the companies regulated by the RBI, along with the compliance of regulatory instructions. At the same time, its work will also make the rules of RBI more effective.
Let us tell you that earlier the Regulation Review Authority (RRA) was constituted by the RBI in the year 1999 for a year. At that time RBI had formed it to review the regulation, circular, reporting system based on the feedback of its people, banks and other financial institutions.
RRA 2.0 will take feedback from regulated institutions and will work to check and streamline RBI’s process of circulating circulars and orders. Along with this, its task will be to discourage the regulated entities to file paper-based returns and encourage them to file digital returns online. Its job is to make regulatory and supervisory instructions more effective.