RBI Regulator Calls for Update and Periodic Review of Statements
The Regulatory Review Authority of the Reserve Bank of India (RBI) has recommended the withdrawal of 714 regulatory instructions which have become obsolete or redundant and have not been explicitly withdrawn.
Based on a comprehensive review of reports submitted by regulated entities, the RRA has recommended the complete elimination of paper-based reporting and has identified 65 regulatory reports that should be removed or merged with other reports or should be converted to statements online.
In its report submitted to the RBI, the RRA also suggested that the review and revocation of old and prescribed regulations can be undertaken to align with recent circulars and that this exercise can be institutionalized in such a way that only regulations current and updated instructions are available in the public domain.
She proposed a periodic review of regulatory or prudential statements at least once every three years. The RRA recommended that ad hoc returns introduced for specific data capture be prescribed with a sunset clause of not more than six months and that any extension beyond the initial period or conversion to a permanent return should be made after passing the rigors of scrutiny. and endorsement by the Returns Governance Group (RGG).
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He also recommended moving from the current requirement of submitting data fortnightly to a data reporting system on the 15th and last working day of each calendar month. This would improve intertemporal comparison of banking data and other economic variables and improve data quality, the RRA said.
In addition to the review that has been undertaken as part of the current exercise, the RRA has recommended that departments prescribing declarations may frequently review the content and periodicity of declarations with a view to determining the need for their maintenance.
The RRA recommended that the RBI endeavor to follow the public consultation process for any significant regulatory changes being considered. The draft instructions should ideally be placed on the RBI website for stakeholder comments and finalized after reviewing comments, he said.
While the redesign of the RBI website is expected to be completed soon, the RRA has recommended that all content posted on the RBI website be updated in real time. The layout of the RBI website should be improved to make it more interactive and easier to navigate, he said.