A case for making RBI regulations plain, simple

Plain language in communication will help customers of financial services to become aware of their rights. It will make information accessible and help the RBI's work

The April bulletin of the Reserve Bank of India (RBI) has an interesting study on ‘Gauging Linguistic Complexity of Regulatory Communication’. Shorn of jargon, it measures the complexity of the language in central bank regulations. It suggests that most circulars require the reader to be a graduate, which is generally the education level of commercial bank employees. However, a corollary emanating from this conclusion is whether circulars should be aimed only at regulated entities or should they also be able to be understood by common people who use banking services. As the latter is needed too, a simpler version of