The Regulations Review Authority of the Reserve Bank of India (RBI), has suggested that regulatory instructions should contain a brief statement of object, explaining the rationale behind issuance of a particular set of instructions.
This, it said, would address gaps in understanding and interpreting instructions issued from time to time by the central bank.
The authority has also suggested that a periodic review of existing regulations should be done to align them with evolving developments in industry practices.
RBI had set up the Regulations Review Authority last year in April, to undertake a review of its regulations and compliance procedures and suggest measures to streamline them to make them more effective.
The authority further recommended that the Master Circulars issued by RBI may be updated in a time bound manner and may eventually be converted into Master Directions, wherever feasible.
Regulatory instructions which have been repealed or withdrawn, may be archived or stamped to avoid confusion amongst the regulated entities as well as the members of general public, the panel suggested further.
It also recommended that all the content posted on RBI website may be updated on real-time basis and the website's layout may be enhanced to make it more interactive and convenient for navigation.
In addition to this, all instructions on the RBI website may be categorised subject-wise as well as function-wise and based on the category of regulated entities with the necessary linkages to relevant FAQs, consultative papers and master directions, the authority recommended.