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The RBI has set up the second Regulatory Review Authority (RRA 2.0), initially for a period of one year from May 01, 2021, with a view to streamline regulations and reduce the 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.
Background
- Initially, Regulations Review Authority (RRA) was established on April 1, 1999, for the purpose of reviewing regulations, circulars, and reporting systems based on public, bank, and financial institution feedback.
- RRA's recommendations resulted in the simplification of regulatory prescriptions, the issuance of a master circular, reduction in the reporting burden on regulated entities and streamlined and improved processes.
Source: The Hindu
