Quality over quantity

RBI'S PLAN TO SET UP REGULATORY REVIEW CELL COULD BUILD IMPACTFUL LEGACY WITH GOOD EXECUTION

- SHINJINI KUMAR

The Reserve Bank of India's (RBI) announcement to set up a 30-member Regulatory Review Cell (RRC) to "streamline and rationalise" their regulations, directives, circulars, and hopefully clarifications and counter-clarifications issued over time, is a truly welcome move. If executed well, it has the potential to build the legacy of the governor that will be remembered by the industry for years to come. On the other hand, it runs the risk of becoming yet another exercise in bureaucratic tough talk and creating a cascading effect on the same stakeholders, which may either maintain the status quo or be only marginally better: a well-meaning gesture, to be celebrated but without easing the lives of regulated entities, professionals, or the ever-growing circle of legal entities caught in the web of compliance. Because the much-loved and admired RBI touches the lives of a billion-plus Indians, not just through inflation targeting or monetary transmission—however tenuous—and know your customer (KYC) requirements, but also through a vastly inclusive digital transaction capability, frequent KYC refresh, financial fraud mitigation, cross-border transactions, and so on.

So, what will it take to make this impactful and worthy of legacy? I am sure there are enough capable minds at play to grapple with this question. But as someone who has worked inside and outside of the RBI for an equal number of years, I would highlight the following:

Brutal honesty while assessing the status