MUMBAI: To strengthen the institutional mechanism for review of its regulations, the Reserve Bank has constituted a regulatory review cell.
The mandate of the cell, which will review the existing regulations in a phased manner, is to ensure that all the regulations issued by the RBI are subject to a comprehensive and systematic internal review every five to seven years, the central bank said in a statement on Wednesday.
The RBI announced that State Bank of India managing director Rana Ashutosh Kumar Singh will head the advisory group on regulations. The other five members are TT Srinivasaraghavan, a former managing director & non-executive director at Sundaram Finance, Gautam Thakur, chairman of Saraswat Co-operative Bank, Shyam Srinivasan, the former chief executive of Federal Bank, Ravi Duvvuru, a former president & chief compliance officer at Jana Small Finance Bank, and NS Kannan, the former chief executive of ICICI Prudential Life, the RBI said.
“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 external experts, to channel industry feedback into the periodic review of regulations through the regulatory review cell,” the RBI said.
The advisory group on regulations 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, it will also periodically undertake a review of the existing regulations, keeping in view factors such as the stated objectives; experience gained through surveillance, supervision and enforcement actions; among others.
The review will also take into account relevant orders passed by courts/tribunals; global best practices prescribed by international standards setting bodies; its relevance in a changed environment; the scope for reducing redundancies; and any other factor considered relevant by the bank.