The Regulation Review Board of the Reserve Bank of India (RBI) has recommended the withdrawal of 714 of the regulatory instructions which are either outdated or redundant and not expressly withdrawn.
Based on a comprehensive review of returns from regulated entities, the RRA recommended eliminating paper returns entirely and identified 65 Regulatory Filings that should either be discontinued, combined with other returns, or should be converted to online returns.
In its report to the RBI, the RRA also suggested that a review and repeal of legacy regulations and outdated regulations might be undertaken to align them with recent circulars and this exercise could be institutionalized in such a way that only current and updated circulars instructions were available in the public domain.
It has suggested a periodic review of regulatory or supervisory returns at least once every three years. The Resettlement Act recommended that earmarked returns entered for specific data capture should be described subject to the lapse of no more than six months and any extension beyond the initial period or conversion into a permanent return should be made after going through rigorous vetting. and approval of the Returns Governance Group (RGG).
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It also recommended a shift from the current bi-weekly data-reporting system to a system for reporting data on the fifteenth and last business day of each calendar month. This will improve the temporal comparison between banking data and other economic variables and improve the quality of the data.
Regardless of the review conducted under the present exercise, the RRA recommended that administrations requesting returns may often review the contents and frequency of acknowledgments with a view to ensuring the need for their continuation.
The RRA has recommended that it be RBI’s endeavor to follow a process of public consultation for all significant regulatory changes being considered. The draft instructions should ideally be placed on the RBI website for stakeholder feedback and finalized after consideration of the comments, she said.
While the renovation of the RBI website is expected to be completed soon, the RRA has recommended that all content posted on the RBI website be updated on a real-time basis. She said that the design of the RBI website should be improved to make it more interactive and navigable.