RBI sets up advisory group to review all regulations every 5-7 years

The Reserve Bank of India (RBI) has announced the creation of a Regulatory Review Cell (RRC) to ensure all regulations are reviewed in a systematic and timely manner. The move will take effect from October 1, 2025.

According to the RBI, the RRC will be based in the Department of Regulation and will oversee a systematic review of all RBI regulations every five to seven years. The reviews will be conducted in stages, enabling the bank to gradually assess its extensive regulatory framework.

RBI stated, "The mandate of the RRC is to ensure that all the regulations issued by the Bank are subject to a comprehensive and systematic internal review every 5 to 7 years."

The RBI stated that the initiative builds on its earlier “Framework for Formulation of Regulations” and aims to make rules more effective, relevant, and responsive to changing conditions. It emphasises three key areas. First, consulting with stakeholders, analysing the impact of regulations, and reviewing them regularly. It also demonstrates the RBI’s commitment to greater transparency and public involvement in the regulatory process.

To further enhance industry participation, RBI has also established an Advisory Group on Regulation (AGR). This independent body will comprise external experts and will direct industry views into the review process carried out by the RRC.

The AGR will be chaired by Rana Ashutosh Kumar Singh, Managing Director of the State Bank of India, and will include five other members from the banking and financial services industry: T. T. Srinivasaraghavan, former Managing Director and Non-Executive Director of Sundaram Finance Ltd., Gautam Thakur, Chairman of Saraswat Co-operative Bank Ltd., Shyam Srinivasan, former Managing Director and CEO of Federal Bank Ltd., Ravi Duvvuru, former President and Chief Compliance Officer of Jana Small Finance Bank Ltd., N. S. Kannan, former Managing Director and CEO of ICICI Prudential Life Insurance Co. Ltd.

The group will also have the option to include additional experts whenever necessary. It will serve a term of three years, which may be extended by a further two years, subject to review, stated the RBI.