RBI Sets Up Regulatory Review Cell for Periodic Oversight

In a move to ensure that India’s financial regulations remain contemporary, effective, and stakeholder-friendly, the Reserve Bank of India (RBI) has constituted a Regulatory Review Cell (RRC). This cell will undertake systematic, periodic reviews of existing regulations every five to seven years, starting from October 1, 2025. The initiative also includes the formation of an independent Advisory Group on Regulation (AGR) comprising external experts. This development is crucial for government exam aspirants focusing on banking reforms, regulatory frameworks, and financial governance.

What is the Regulatory Review Cell (RRC)?

The RRC will function under the Department of Regulation in the RBI. It has been set up to,

• Ensure a phased review of all regulations.
• Align regulatory frameworks with evolving market conditions, technological advancements, and global best practices.
• Maintain regulatory simplicity, consistency, and relevance.
• This move aligns with global trends in regulatory modernization, strengthening India’s position as a well-regulated financial market.

Advisory Group on Regulation (AGR)

To promote stakeholder engagement, the RBI has concurrently set up an independent Advisory Group on Regulation (AGR). This group will channel industry insights and feedback into the regulatory review process.

Key Features of AGR

• Composed of external experts from the banking and finance sector.
• Can co-opt additional members as needed.
• Initial tenure of three years, renewable for two more years, subject to performance review.
• Works alongside the RRC to advise on industry needs and regulatory adaptability.

Members of the Advisory Group on Regulation (AGR)

The following eminent experts have been appointed to the AGR,

1. Rana Ashutosh Kumar Singh Managing Director, State Bank of India Chairman
2. T. T. Srinivasaraghavan Former MD & Director, Sundaram Finance Ltd. Member
3. Gautam Thakur Chairman, Saraswat Co-operative Bank Ltd. Member
4. Shyam Srinivasan Former MD & CEO, Federal Bank Ltd. Member
5. Ravi Duvvuru Former CCO, Jana Small Finance Bank Ltd. Member
6. N. S. Kannan Former MD & CEO, ICICI Prudential Life Insurance Member

Significance of the Move

• Reduces regulatory clutter and outdated provisions.
• Brings in transparency and predictability in financial regulations.
• Enhances India’s ease of doing business in the financial sector.
• Aligns RBI’s policies with international financial standards.
• Increases public trust in regulatory frameworks.

Global Context

Periodic regulatory review is a global best practice. Central banks in countries like the UK, Australia, and the US undertake similar reviews to remain responsive to evolving financial landscapes.

Static Facts to Remember

• Initiative: Regulatory Review Cell (RRC)
• Launched By: Reserve Bank of India
• Effective Date 1 October 2025
• Review Frequency :Every 5 to 7 years
• Advisory Body :Advisory Group on Regulation (AGR)