RBI wants to connect better, issues ‘Master Directions’

RBI wants to connect better, issues 'Master Directions'

The Reserve Bank today started the process of issuing ‘Master Directions’ on various regulatory issues in its bid to simplify the communication process.

To begin with, it issued 17 such comprehensive directions covering foreign exchange transactions

Master Directions on foreign exchange consolidate relevant circulars issued so far and cover different classes of transactions permitted under the rules and regulations under the Foreign Exchange Management Act (FEMA).

This follows its fourth bi-monthly monetary policy review on September 29 last year, which stated that RBI will update all its master regulations and streamline the required procedure for compliance by January 1, 2016.

All the updated master regulations will be placed online as the Reserve Bank is working on improving clarity in regulatory communications.

“Beginning January 2016, the Reserve Bank will issue Master Directions on all regulatory matters. The Directions to be issued will consolidate instructions on rules and regulations framed by the Reserve Bank under various Acts, including banking issues and foreign exchange transactions,” it said in a statement.

It further said further explanations will be issued by way of frequently asked questions (FAQs) in easy-to-understand language, wherever necessary, after the issuance of the Master Directions.