RBI Forms Committee To Review Regulations

The mandate of the RRC, headed by State Bank of India Managing Director Rana Ashutosh Kumar Singh and comprising five other members, is to ensure that all the regulations issued by RBI are subject to a comprehensive and systematic internal review every 5 to 7 years, the central bank said in a statement.

The RRC will be set up in the Department of Regulation effect from October 1, 2025 and will undertake the review of regulations in a phased manner.

“In order to strengthen the stakeholder engagement in the regulatory process and leverage industry expertise on a continued basis, an independent Advisory Group on Regulation has been formed concurrently, comprising of external experts, to channel industry feedback into the periodic review of regulations through the RRC,” RBI said.

The Advisory Group will have the provision to co-opt additional experts as considered appropriate. It will have an initial tenure of three years, renewable by a further period of two years, subject to
review.

Under the central bank’s Framework for Formulation of Regulations, while the RBI will update, amend or repeal the existing Regulations, as deemed necessary, it will periodically undertake a review of the Regulations in force, keeping in view factors such as the stated objective(s); experience gained through surveillance, supervision and enforcement actions; among others.

The review will also take into account relevant orders passed by courts or tribunals; global best practices or standards prescribed by international standard setting bodies; its relevance in a changed
environment; the scope for reducing redundancies; and any other factor considered relevant by the Bank.

The other members of the RRC include TT. Srinivasaraghavan, Former Managing Director & Non-Executive Director, Sundaram Finance, Gautam Thakur, Chairman, Saraswat Co-operative Bank, Shyam Srinivasan, former managing director of Federal Bank.