Looking back at 2022: RBI's regulatory review 2.0 is a game-changer

It has taken nearly two decades for RRA 2.0 to be set up under Shaktikanta Das in November 2021; and its recommendations in June this year must surely go down as a major reform

Alan Greenspan, chairman of the US Federal Reserve from 1987 to 2006, once famously said, “If I seem unduly clear to you, you must have misunderstood what I said.”

It was a reflection of an era when central bankers around the world spoke in a tongue which even those who breathed the rarefied air of high finance and economics found hard to decipher. This was not restricted to monetary policy, but extended to commercial banking regulations as well.
 

In the Indian context, the post-reform period called for a comprehensive review of existing guidelines and a recalibration of the manner in