The Regulations Review Authority of the Reserve Bank of India (RBI), has suggested that regulatory instructions should be 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 and make them more effective.
The authority has suggested a slew of measures to make these procedures more result-oriented.