Regulations Review Authority 2.0

The Reserve Bank of India recently established the Regulations Review Authority (RRA) 2.0. The authority is to function for a period of one year.

Functions of RRA 2.0

• The RRA will review the regulatory prescriptions internally.
• It will also review the regulatory prescriptions by seeking suggestions from regulated entities and stakeholders.
• It will work towards easing the implementations of the regulatory prescriptions.
• Deputy Governor Rajeshwar Rao has been appointed as the head of RRA.
• It will work in reducing the compliance burden on regulated entities. This is to be done by streamlining the reporting mechanism, removing paper-based submission of returns wherever possible and revoking obsolete instructions.
• The RRA will also obtain feedback from regulated entities on simplification of procedures and enhancing the ease of compliance.
• The RRA will also examine and suggest the changes required in the dissemination process of RBI instructions and circulars.

RRA in 1999

Earlier, RRA was set up in 1999-2000. The authority then reviewed the regulations of the apex bank, simplified regulatory prescriptions, reduced reporting burden.

Deputy Governors of RBI

• The RBI is governed by a governor, four deputy governors, two finance ministry representatives and four directors representing the local board headquarters in Chennai, Mumbai, Kolkata and New Delhi.
• The concept of RBI was based on the strategies formulated by Dr Ambedkar in his book “The Problem of the Rupee”.

Recent Developments in RBI

In February 2021, RBI set an expert committee under NS Vishwanath. The committee was established to review the Urban Cooperative Banks. It will assess the impact of the Urban Cooperative Banks over the last five years.

Month: Current Affairs - April, 2021