RBI Increases Public Involvement with 72 Consultations Planned for 2021-2024 | Finance News

RBI Conducts 72 Public Consultations Between 2021 and 2024, Enhances Stakeholder Engagement

The Reserve Bank of India (RBI) has been actively engaging with the public through a series of consultations across various regulatory and supervisory areas. In the past three years alone, the central bank has conducted a total of 72 public consultations, providing stakeholders with the opportunity to provide feedback on new regulatory measures, incremental changes, and comprehensive reviews of existing guidelines.

According to RBI’s annual report, the Department of Regulation (DoR) has significantly increased its public consultations, with 21 consultations held in the financial year 2023-24, compared to just six and five in the previous two years. The Department for Payments and Settlements (DPSS) and the Department of Supervision (DoS) have also ramped up their engagement with stakeholders during this period.

The regulator’s participative approach to policy formulation has proven to be beneficial in identifying inconsistencies, gaps, and stakeholder concerns, leading to more robust regulations. By seeking feedback from the public, the RBI is able to preempt potential risks and ensure that regulatory measures are in line with industry needs and standards.

In addition to seeking written comments and feedback on draft regulatory policies, the RBI also conducts in-house consultations, sets up advisory committees, and issues FAQs to address stakeholder queries. This multi-faceted approach ensures that all perspectives are taken into consideration before finalizing regulatory measures.

The RBI’s commitment to transparency and inclusiveness in policy formulation is further underscored by its periodic interactions with stakeholders on monetary policy and other issues. This open dialogue helps build trust and confidence in the regulatory framework, ultimately benefiting the financial ecosystem as a whole.

Overall, the RBI’s emphasis on public consultations reflects its dedication to fostering a regulatory environment that is responsive to the needs of the industry and the public. By actively engaging with stakeholders, the central bank is able to stay ahead of emerging risks and challenges, ultimately contributing to a more stable and resilient financial system.

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