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RBI Regulation-Making Framework With Public Consultation

8 May 20251 min read
BANKING & FINANCERBIRegulation-MakingFramework WithPublic Consultation8 May 2025safalsetu.com

Why in the news

RBI set out a uniform process for making its regulations, with public comments invited on each draft.

Key facts

  • Coverage: directions, guidelines, notifications, orders, policies, specifications and standards.
  • Drafts must be posted on RBI’s website with a Statement of Particulars.
Statement includes
Objectives of the regulation
Impact analysis, as far as feasible
Reference to international standards and global best practices

Objective

  • A consistent, participatory, evidence-based process that improves quality and legitimacy of RBI instruments.

Exam angle

  • Key term: Statement of Particulars; principle: public consultation.

Test yourself

1. What must accompany RBI's draft regulations under its new regulation-making framework?

A Statement of Particulars accompanies each draft.

2. Which item is NOT listed in the Statement of Particulars under RBI's new framework?

It lists objectives, impact analysis and international standards, not penalties.

3. Under RBI's new framework, where are draft regulations published for public comment?

Drafts are posted on the RBI website.