The Reserve Bank of India published a Framework for Formulation of Regulations that sets out how it will develop and amend its regulatory instruments, with a focus on transparency, public consultation and impact analysis to the extent feasible. The framework defines “Regulations” broadly to include regulations, directions, guidelines, notifications, orders, policies, specifications and standards issued under the statutes listed in an annex. Before issuing a regulation, the Reserve Bank will publish a draft and a statement of particulars on its website covering the enabling legal provisions, objectives and an impact analysis where feasible, any relevant international standards or best practices, implementation approach and the consultation timeline. Stakeholders and the public must be given at least 21 days to submit comments, and the final regulation will be published with a general response to the feedback received, with the option to repeat consultation if the final text is substantially different. Significant amendments will follow the same consultation and impact analysis process, and the Reserve Bank will periodically review regulations in force based on stated objectives, supervisory and enforcement experience, court and tribunal orders, global standards, relevance in a changed environment and opportunities to reduce redundancies. The process does not apply to internal administrative or organisational matters, purely procedural changes with no substantive impact, or regulations issued to specific entity or entities that are not general in nature. The Reserve Bank may dispense with or modify the framework, with reasons recorded, where confidentiality is required, following the process would defeat the regulation’s objectives, public interest considerations apply, or urgent intervention is needed; existing regulations remain valid, and non-adherence to the framework does not in itself invalidate a regulation.

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