Reserve Bank of India (RBI) has issued Framework for Formulation of Regulations which outlines the broad principles for formulation of Regulations issued in exercise of the powers conferred on the Reserve Bank of India by or under the provisions of various Acts and Rules. It covers aspects regarding stakeholder consultation, impact analysis and review of Regulations. The Framework reinforces and demonstrates the Reserve Bank’s commitment to enhanced transparency and consultative approach for issuance of Regulations.
The central bank has noted that it will follow a consultative approach framework for issuing any new guidelines and it would give stakeholders 21 days to comment on draft regulations and conduct an impact analysis of the regulation before finalizing them. Before issuance of a Regulation, the Bank shall 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 Bank shall consider the public feedback and provide a general statement of its response to the comments received, along with the final Regulation, on its website. If the Bank decides to issue the final Regulation in a form substantially different from the draft that was issued for public comments, it may choose to repeat the process under this Framework.
The final Regulation shall be published promptly post the receipt of approval from the competent authority and its date of enforcement shall be from the date specified therein. RBI may explore additional mechanism(s) for engaging with stakeholder(s), as considered appropriate. In particular, it may, where deemed necessary, issue a discussion paper eliciting response to issues and questions for consultation, before preparing and publishing the draft of the Regulation. Before finalizing the Regulation, the Bank shall conduct an impact analysis of the Regulation, to the extent feasible.