RBI introduces Framework for standardizing Regulation Formulation & public feedback process

With an aim to standardise the process of making regulations, the Reserve Bank of India (RBI has published the Framework for Formulation of Regulations. According to an official statement, these regulations will include all directions, guidelines, notifications, orders, policies, specifications, and standards as issued by the Reserve Bank.

According to the new framework, the RBI must publish the draft of such regulation along with a statement of particulars on the Bank’s official website (www.rbi.org.in) and seek public comments. The statement of particulars must include objectives of the regulations, including an impact analysis of the said regulation, to the extent feasible. It shall also include guidance from the international standard-setting bodies and



best practices, if any. The apex bank must then provide stakeholders at least 21 days to submit their comments.

RBI must provide a general statement of its response to the comments received, along with the final regulations on its website. The same process must be followed if any of the regulations need to be amended.

The Reserve Bank would further need to review the regulation in force, keeping in view the stated objectives and its relevance in a changed environment. It must consider experience gained through surveillance, supervision and enforcement actions along with global best practices and scope of reducing redundancies to update, amend or repeal any existing regulation.