Published: 18 September 2025Economy
RBI Establishes Regulatory Review Cell for Periodic Review of All Regulations
The Reserve Bank of India announced the establishment of a Regulatory Review Cell (RRC), effective October 1, 2025, to ensure all regulations are periodically reviewed every 5 to 7 years. An independent Advisory Group on Regulation (AGR) comprising external experts has also been set up to provide stakeholder feedback.
The RRC will systematically examine existing regulations for relevance, effectiveness, and compliance burden. This initiative aims to reduce regulatory complexity, eliminate outdated provisions, and create a more business-friendly environment in the financial sector while maintaining prudential safeguards. The six-member AGR is chaired by Rana Ashutosh Kumar Singh of State Bank of India and includes senior financial-sector representatives from SBI, Sundaram Finance, Saraswat Co-operative Bank, Federal Bank, Jana Small Finance Bank, and ICICI Prudential Life Insurance.
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Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
After the first CRR tranche on September 6, 2025, what was the CRR rate for banks?
Explanation · Correct answer DAfter the first 25 bps reduction, banks were required to maintain CRR at 3.75% of NDTL.
Frequently asked questions
What is the RBI Regulatory Review Cell established in 2025?
**RBI established Regulatory Review Cell (RRC) effective October 1, 2025, to periodically review all regulations every 5-7 years**. The Cell will periodically review all RBI regulations to remove outdated or redundant provisions.
Why did RBI establish a Regulatory Review Cell?
**An independent Advisory Group on Regulation (AGR) with external experts set up for stakeholder feedback**. The goal is to simplify and modernise the regulatory framework for banks and financial institutions.
What types of regulations will the RBI Regulatory Review Cell examine?
**AGR includes representatives from banking, NBFCs, fintech, and academia**. Banking, NBFC, payment systems, and foreign exchange rules are all within the Cell's scope.
How will the RBI Regulatory Review Cell benefit banks and financial businesses?
**Initiative aims to reduce regulatory complexity, eliminate outdated provisions, and create a more business-friendly financial environment**. Eliminating redundant regulations reduces compliance burden and improves ease of doing business in India's financial sector.
What is the broader objective of RBI's periodic regulatory review?
**The Reserve Bank of India announced the establishment of a Regulatory Review Cell (RRC), effective October 1, 2025, to ensure all regulations are periodically r**. Periodic reviews ensure regulations remain relevant and effective in a rapidly evolving financial landscape.
