RRA 2.0

Recently, the Reserve Bank Of India (RBI) has constituted an Advisory Group to assist the second Regulations Review Authority (RRA 2.0).
The RBI has set up the RRA 2.0, initially for a period of one year from 1st May, 2021, with a view to streamline regulations and reduce the compliance burden of regulated entities.

Important points:

In 1999, the RBI had set up a Regulations Review Authority (RRA) for reviewing the regulations, circulars, reporting systems, based on the feedback from the public, banks, and financial institutions.
It will focus on streamlining regulatory instructions, reducing compliance burden of the regulated entities by simplifying procedures and reducing reporting requirements, wherever possible.
It will also obtain feedback from regulated entities.
Regulated entities include commercial banks, urban co-operative banks, Non-Banking Financial Companies.

Reserve Bank of India

RBI was established on 1st April, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.
Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.
Formulates, implements and monitors the monetary policy
Government Securities Acquisition Programme (G-SAP).
Regulator and supervisor of the financial system: Prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
Manages the Foreign Exchange Management Act, 1999.
Issues and exchanges or destroys currency and coins not fit for circulation.
Performs a wide range of promotional functions to support national objectives.
Introduces and upgrades safe and efficient modes of payment systems in the country to meet the requirements of the public at large.

SOURCE: THE HINDU THE ECONOMIC TIMES ,MINT

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