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The Reserve Bank of India (RBI) on Wednesday said it will publish the draft of a regulation, along with a statement of particulars, on its website and seek public comments before finalising it. This move is part of its “Framework for Formulation of Regulations”.
As per the framework, the RBI will provide at least 21 days for stakeholders and members of the public to submit their comments. It will then consider the feedback and publish a general statement of its response to the comments received, along with the final regulation, on its website.
The framework, which outlines the broad principles for the formulation and amendment of regulations by the RBI, aims to standardise the regulatory process in a transparent and consultative manner, following impact analysis where feasible.
The statement of particulars will include, among other elements, the enabling provision(s) that empower the RBI to issue the regulation; the objective(s) of the regulation, including an impact analysis to the extent feasible; and guidance from international standard-setting bodies and best practices, if available.
Further, the statement will include the manner of implementation of the regulation and the timelines for receiving public comments.
If the RBI decides to issue the final regulation in a form substantially different from the draft released for public feedback, it may choose to repeat the process under the framework.
The central bank said the final regulation will be published promptly after receiving approval from the competent authority, and its enforcement date will be as specified therein.
The RBI may also explore additional mechanisms for engaging with stakeholders, as considered appropriate. In particular, it may, where deemed necessary, issue a discussion paper to solicit responses on specific issues and questions before preparing and publishing the draft regulation.
Review of regulation
While the RBI will update, amend, or repeal existing regulations as deemed necessary, it will periodically undertake a review of the regulations in force.
The review will take into account the stated objectives; experience gained through surveillance, supervision, and enforcement actions; relevant orders passed by courts or tribunals; and global best practices or standards prescribed by international standard-setting bodies, among other factors.
The central bank said it may, after recording reasons, dispense with or suitably modify any or all provisions of this framework in certain cases — for instance, where in its opinion confidentiality must be maintained, or where following the procedure under this framework would defeat the objectives or purpose of the proposed regulation.
The RBI may also dispense with or modify provisions of the framework if it considers it expedient to do so in the public interest, or where urgent intervention is required.
Published on May 7, 2025
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