RBI sets up Committee to assist RRA 2.0

The Reserve Bank of India recently constituted a Committee under the Managing Director S Janaki Raman. The committee is to assist the second Regulatory Review Authority.

About the Committee

The committee will assist the authority to identify areas, guidelines, regulations and returns. It will submit reports periodically to RRA that will provide suggestions and recommendations.

Regulatory Review Authority

In 1999, RBI set up the Regulatory Review Authority to review circulars, regulations, and reporting systems. The authority reviews these parameters based on feedback from banks, public and financial institutions. The RRA 2.0 was established to streamline regulations and reduce compliance burden of regulated entities.

RRA 2.0

RRA 2.0 was established in April 2021. The authority is to function for a period of one year. It will review the regulatory prescription internally. Also, it will examine and suggest changes required in the dissemination process of RBI instructions and circulars.

It will focus on reducing compliance burden. This is to be achieved by simplifying procedures and reducing reporting requirements wherever possible.

It will make regulatory instruction more effective.

Also, it will aid in streamlining reporting mechanism, obviating paper-based submission of returns wherever possible and revoking necessary instructions.

Section 58 of Reserve Bank of India Act, 1934

This section empowers the Central Board of RBI to form committees. The act also empowers them to provide powers and functions to these committees within the jurisdiction of the Reserve Bank of India Act, 1934.

The RBI is governed by the Central Board of directors. The board is appointed by the Government of India. The board is formed of governor, deputy governors, ten directors nominated by the GoI,

Month: Current Affairs - May, 2021