New Delhi, Apr 20 (KNN) The Reserve Bank of India (RBI) has decided to set up a new Regulations Review Authority (RRA 2.0) to review its regulations internally and in consultation with other stakeholders.

Deputy governor M Rajeshwar Rao has been appointed as the head of the RRA which would be set up for a period of one year from May 1, 2021, unless its tenure is extended.

The central bank had set up an RRA initially for a period of one year from April 1, 1999 for reviewing the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions. The recommendations of the RRA enabled streamlining and increasing the effectiveness of several procedures, simplifying regulatory prescriptions, paved the way for issuance of master circulars and reduced reporting burden on regulated entities, the RBI said.

“Considering the developments in regulatory functions of the Reserve Bank over the past two decades and evolution of the regulatory perimeter, it is proposed to undertake a similar review of the Reserve Bank’s regulations and compliance procedures with a view to streamlining/ rationalising them and making them more effective,” the RBI said in a statement on Thursday.

According to the terms of reference, RRA 2.0 will make regulatory and supervisory instructions more effective by removing redundancies and duplications. It will also reduce compliance burden on regulated entities by streamlining the reporting mechanism, revoke obsolete instructions and obviate paper-based submission of returns wherever possible.

RRA 2.0 will also obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance. It will also suggest changes required in the dissemination of RBI circulars.

The RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process, RBI said.