RBI issues framework for new norms, to conduct impact analyses when possible
This story was originally published at 19:41 IST on 7 May 2025
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NEW DELHI – The Reserve Bank of India on Wednesday issued a framework for formulation of regulations, outlining the broad principles it will follow while making norms under various laws and rules. "The Framework reinforces and demonstrates the Reserve Bank's commitment to enhanced transparency and consultative approach for issuance of Regulations," the RBI said in a statement.
As per the framework, the central bank will first publish draft regulations, give at least 21 days for stakeholders and the public to submit their comments, provide a 'general statement' of its response to the comments received, and then issue the final regulations. "If the Bank decides to issue the final Regulation in a form substantially different from the draft that was issued for public comments, it may choose to repeat the process under this Framework," according to the framework, adding that before the regulations are finalised, the RBI shall conduct an "impact analysis of the regulation, to the extent feasible".
The central bank already follows the framework to a great extent, with additions being made to the process recently. For instance, the final guidelines on the revised Liquidity Coverage Ratio framework, released on Apr. 21, said the RBI had undertaken an impact analysis of the measures, with banks' December-end data suggesting their net impact will improve the Liquidity Coverage Ratio of the lenders by around 6 percentage points at the aggregate level.
The framework released Wednesday will not apply to internal, administrative, or organisational matters, procedural matters that do not result in "any substantive change or impact on any existing Regulation", and any regulation that is not general in nature. End
Reported by Siddharth Upasani
Edited by Ashish Shirke
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