RBI has introduced a new framework to streamline the process of making regulations

Current Context: The Reserve Bank of India (RBI) introduced the Framework for Formulation of Regulations on May 7, 2025, to enhance transparency, stakeholder participation, and regulatory efficiency.

Key Features:

Public Consultation:

• RBI will publish draft regulations on its website, allowing 21 days for public feedback.
• This ensures better stakeholder engagement before regulations are finalized.

Impact Analysis:

• Each regulation will undergo an impact assessment to evaluate potential economic, legal, and sectoral implications.
• This step helps in ensuring effective implementation and minimizing disruptions.

Periodic Review:

• Existing regulations will be reviewed based on court rulings, global best practices, and economic developments.
• This ensures that regulations remain relevant and adaptable over time.

Exemptions:

• Certain regulations, such as internal administrative matters, may bypass the framework for efficiency and operational needs.

Question:

Q.1 How many days are provided for public feedback on draft regulations under the new RBI framework?
a) 15 days
b) 21 days
c) 30 days
d) 45 days

Answer: b) The RBI mandates a 21-day public consultation period for draft regulations to ensure stakeholder engagement.