The Reserve Bank of India (RBI) has recently announced two major institutional changes: the creation of a Regulatory Review Cell (RRC), and the establishment of an Advisory Group on Regulation (AGR). These are intended to streamline, institutionalise, and make more systematic the process by which RBI regulations are reviewed, updated, or repealed.

With a financial sector that is evolving rapidly (via fintech, digital payments, global regulatory standards, risk from AI/data, etc.), there has been growing demand for more agility, clarity, and stakeholder input in regulatory frameworks. The RRC and AGR are RBI’s response to those demands.

This article explains what these new bodies are, how they will function, what gaps they aim to address, possible challenges, and likely impacts on the financial regulatory landscape in India.

What Are RRC & AGR: Mandate, Structure, Key Features

In this section, we detail what the Regulatory Review Cell and the Advisory Group on Regulation are meant to do, who is involved, what their timelines are, and how they are structured.

The Regulatory Review Cell (RRC) will be constituted under RBI’s Department of Regulation, effective from October 1, 2025. Its mandate is to ensure that all regulations issued by RBI undergo a comprehensive, internal review every 5-7 years.
It will conduct reviews in a phased manner, meaning RBI will not attempt to review all regulations at once but over time.
Alongside RRC, the RBI has formed an external Advisory Group on Regulation (AGR) to enhance stakeholder engagement. The AGR will feed industry feedback into the RRC’s review work.
The AGR is chaired by Rana Ashutosh Kumar Singh, MD of SBI. Other members include:
1. T. T. Srinivasaraghavan (former MD & non-executive director, Sundaram Finance)
2. Gautam Thakur (Chairman, Saraswat Co-operative Bank)
3. Shyam Srinivasan (former MD & CEO, Federal Bank)
4. Ravi Duvvuru (former President & Chief Compliance Officer, Jana Small Finance Bank)
5. N. S. Kannan (former MD & CEO, ICICI Prudential Life Insurance)
The AGR will have an initial tenure of three years, with the possibility of extending for another two years. It also has a provision to co-opt additional experts when required.

Why RBI Did This: Gaps & Drivers

To appreciate the significance of RRC & AGR, it helps to understand what problems RBI is trying to solve, and what pressures have been building.

Many existing RBI regulations and master directions have historical roots; some were formulated decades ago. They may have become outdated, redundant, or less aligned with current market realities, risk profiles, technology change, global best practices.
Regulation updates have often been ad hoc: via circulars, or in response to crises, or piecemeal amendments. There hasn’t always been a regular, systematised mechanism to review whether regulations are still justified, effective, or whether they impose unnecessary burden.
Stakeholders (banks, NBFCs, fintechs, cooperative banks, etc.) have flagged issues such as overlapping regulations, ambiguous rules, regulatory burden, delays in getting clarifications. A process that institutionalises periodic review and stakeholder inputs is expected to help.
The RBI has earlier in May issued a "Framework for Formulation of Regulations" that required, among other things, impact analysis (to the extent feasible) and public consultation (at least 21 days) before issuing or amending regulations. This shows a push toward greater transparency and stakeholder involvement.

Key Facts at a Glance

Here is a table summarising key features of the RRC and AGR, their membership, timelines and functions. This aims to help readers quickly see the structure and mandates.

Item	Regulatory Review Cell (RRC)	Advisory Group on Regulation (AGR)
Effective from	October 1, 2025	Concurrently from around same date / shortly thereafter
Mandate / Purpose	Comprehensive internal review of all RBI regulations every 5-7 years; ensure relevancy, remove redundancies, align with market dynamics; undertake in phases.	To channel industry, stakeholder feedback into the RRC process; bring in external expertise; broaden perspectives on regulatory change.
Structure / Oversight	Under RBI’s Department of Regulation; internal mechanism but with inputs from AGR.	Independent body of external experts; opportunity to co-opt additional specialists. Chair plus five members; initial term + extension clause.
Term / Review Frequency	Review period for regulations: every 5-7 years	AGR term: initially 3 years; renewable for 2 more years; experts may be added as needed.
Membership	Internal RBI officials plus coordination with AGR and stakeholders as required	Chair: Rana Ashutosh Kumar Singh (MD, SBI); other members include T.T. Srinivasaraghavan; Gautam Thakur; Shyam Srinivasan; Ravi Duvvuru; N.S. Kannan.

From the above table, the immediate implication is that RBI is moving from a reactive or incremental model of regulation to a more planned, periodic, stakeholder-inclusive model. Over time, this could lead to fewer redundant rules, more clarity, better alignment with international norms, and lowered compliance burden.

How Reviews Will Be Conducted: Process, Criteria & Phases

Understanding how the RRC/AGR will operate in practice is important. This includes what criteria RBI will use to evaluate regulation, how feedback will be gathered, and how the phased approach may work.

The review will consider several criteria for each regulation, such as: stated objective of the regulation; experience from supervision, surveillance and enforcement; relevance given changed economic, technological or market conditions; consistency with global/regional international best practice; judicial/tribunal orders; and possibility to reduce redundancies.
Regulations will be flagged for amendment, repeal or retention depending on whether they are still serving a purpose, are redundant, overlap with other rules, or are causing undue compliance burden.
The review will also examine “master directions”, RBI’s consolidated regulations, so language, structure, and format could be overhauled for clarity and coherence.
Stakeholder engagement is to be built in: through the AGR, industry feedback, public comment periods (as per RBI’s earlier framework). There will also be mechanisms for regulated entities to flag regulations which they see as outdated or conflicting.
Phased manner: given that there are many regulations, RBI will not attempt to review all at once; some categories may be done earlier (e.g. high-impact regulations), others later. Also, reviews will likely be staggered so that no entity is overwhelmed with changes at once.

Challenges, Risks, and What To Watch Out For

While this initiative addresses well-recognised gaps, its success will depend on implementation. These are potential challenges and issues which may arise:

Pace versus quality
Ensuring that reviews are thorough, evidence-based, and inclusive, not rushed or superficial. If RBI tries to speed through too many regulations, mistakes or unintended consequences might happen.
Balancing diverse stakeholder interests
Different regulated entities have different capacity and resources. Large banks may have better capacity to engage; smaller banks, fintechs, cooperative banks might have less. Ensuring the AGR represents a spread and that feedback from less powerful players is heard is crucial.
Regulatory certainty and continuity
Frequent changes or instability in regulatory framework can also create uncertainty for regulated entities. Even useful regulations, if tweaked too often, may lead to compliance costs, operational challenges.
Transparency and accountability in decision-making
The AGR and RRC must make their review criteria, the feedback received, and the decisions made public (to a suitable degree) so that regulated entities can plan and adapt. If only RBI’s internal view counts, stakeholder engagement becomes a formality.
Implementation lag
Even after review, changing regulations (amending, repealing) takes time, especially where rules are embedded in master directions or where overlapping laws/regulators are involved. There may be legal, administrative, and inter-regulatory coordination issues.
Resistance or inertia
Some regulations may be kept for legacy, political, or legal risk reasons even if they are no longer useful. Overcoming institutional inertia or vested interests is not trivial.

Broader Context & International Comparison

Placing the RBI’s action in a wider context helps understand its significance.

Globally, many central banks and financial regulatory authorities have periodic regulatory review mechanisms. These help ensure that regulations remain fit for purpose in light of technological change, evolving risk (e.g. cyber risk, data risk, model risk), global interlinkages. RBI’s move is consistent with that trend.
India’s regulatory evolution in recent years has emphasised principles such as regulatory impact assessment, stakeholder consultation, transparency. The FinTech push, payments reforms, digital banking, etc., all require that regulations adapt more quickly. The RRC/AGR institutionalises that adaptation.
Already, RBI in earlier years has done similar but ad hoc or temporary efforts: for example, a Regulations Review Authority (under a previous SBI MD Swaminathan) worked to recommend withdrawal of many circulars.
The regulatory framework for formulation of regulations (issued in May) which mandates impact analysis and public comments is also part of a broader shift in governance of regulation.

Potential Impacts on Regulated Entities

What do these changes mean for banks, NBFCs, fintechs, cooperative banks, insurers, etc.? Some likely effects:

Reduced compliance burden over time, as outdated or redundant regulations get repealed or simplified. Regulatory requirements may be better calibrated to current risk, technology, business models.
Greater predictability: with periodic reviews, entities will have clearer expectations of when regulatory changes may occur, reducing surprises from sudden rule changes.
Improved clarity: master directions, language and format of regulations may be modernised; overlapping or conflicting regulations may be rationalised.
Better regulatory dialogue: via AGR, there will be a more formal channel for industry concerns, feedback, and perhaps co-creation of regulation. This could help smaller players or those who earlier felt left out.
Faster adaptation to innovation: as technology changes (digital payments, fintech, AI, data analytics, cloud, etc.), RRC/AGR can help ensure rules do not lag behind, enabling innovation while managing risk.
Potential cost of transition: during reviews, entities may need to adjust compliance systems, policies, internal controls; some may incur costs in adapting to revised rules. There could also be a period of uncertainty when changes are underway.

Timeline & Key Milestones

Below is a table laying out the timeline and key future milestones associated with the RRC and AGR rollout. This helps place what to expect and when.

Note: These are based on RBI’s announcements; actual dates may shift depending on implementation.

Milestone	Expected Timing / Date	What It Entails
Formation of RRC under Department of Regulation	October 1, 2025	The RRC becomes operational; starts accepting regulation reviews in phases.
Initial review cycle begins	Starting late 2025 / early 2026	RRC begins first batch of reviews of regulations; some high-impact regulations likely prioritised.
AGR fully functional	Around same time (post formation)	AGR starts collecting feedback, co-opting experts as needed, initiating stakeholder outreach.
First 5-7 year review of some older master directions / regulations	Between 2028-2032 (for older regulations)	Regulations that were issued earlier will be reviewed; some may be repealed, amended or replaced.
AGR tenure review and possible extension	Around 3 years from start 2028; possible additional 2 years till 2030.	Decision on renewing AGR’s term, possibly refreshing membership.

After this table, it is clear that the RBI is aiming for a multi-year, institutionalised process — not a one-off committee. Entities should plan accordingly: those with legacy compliance issues should begin assessing which regulations might be under review, and prepare feedback or suggestions.

Conclusion

The RBI’s establishment of the Regulatory Review Cell (RRC) and Advisory Group on Regulation (AGR) marks a significant step in India’s regulatory evolution. By mandating periodic reviews (every 5-7 years), introducing structured stakeholder input, and creating a clearer process for updating, consolidating or repealing regulations, RBI is trying to ensure that its regulatory framework remains responsive, efficient, and fit for a fast-changing financial world.

The potential benefits include reduced redundancy, better clarity, more alignment with international best practices, stronger regulatory predictability, and reduced compliance burden over time. However, success depends heavily on implementation: ensuring the reviews are rigorous, transparent, inclusive; balancing speed with thoroughness; managing stakeholder diversity; and following through with reforms rather than simply reviewing.

Overall, the move can be seen as RBI’s acknowledgment that regulation is not static and must evolve as markets, technologies, risks, and global standards evolve. If well executed, this could strengthen the resilience, competitiveness, and fairness of India’s financial regulatory regime.

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