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The Reserve Bank of India (RBI) has introduced a structured framework designed to standardize the creation and revision of its regulatory policies. This initiative aims to enhance transparency, consistency, and public engagement throughout the regulatory process.

Key Aspects of the Framework

• Unified Application:The framework covers all forms of RBI regulations, including directions, guidelines, notifications, policies, and standards.
• Mandatory Public Consultation:Draft regulations are required to be published on the RBI’s official website along with a detailed Statement of Particulars. These drafts will remain open for public comments for a minimum period of 21 days, allowing stakeholders to provide their inputs.
• Impact Evaluation:Each draft must clearly outline its objectives, conduct an impact assessment, and reference relevant international best practices and global standards to ensure comprehensive evaluation.
• Response to Feedback:After considering public comments, the RBI will release a summary addressing the feedback alongside the final version of the regulations.
• Regular Review:Existing regulations will undergo periodic reassessment based on supervisory insights, alignment with global developments, and their continued applicability in a dynamic environment.

Significance of the Framework

• Enhances Transparency and Inclusiveness:By inviting public participation, the framework ensures a more open and accountable regulatory process.
• Encourages Evidence-Based Policy:The incorporation of impact analysis and stakeholder feedback supports more informed and effective policymaking.
• Aligns with Global Standards:The framework positions India’s regulatory governance in harmony with international best practices.
• Boosts Regulatory Efficiency:Continuous review and rationalization help in eliminating redundant regulations and improving overall governance.