Financial sector regulators to review norms to ease compliance cost
1 min read . Updated: 02 Feb 2023, 01:36 AM IST
PremiumThe government will set up a single window IT system for registration and approvals
Mumbai: India’s financial sector regulators will review their current guidelines in a move aimed at simplifying and reducing the cost of compliance for regulated entities, finance minister Nirmala Sitharaman said on Wednesday.
“For this, they will consider suggestions from public and regulated entities. Time limits to decide the applications under various regulations will also be laid down," Sitharaman said in her budget speech. She said that public consultations, as necessary and feasible, will be included in the process of regulation-making.
That apart, in order to improve governance and protect investors in the banking sector, she proposed a clutch of amendments to the Banking Regulation Act, the Banking Companies Act and the Reserve Bank of India Act.
“Long term, a clear focus has been articulated on enhancing bank governance and investor protection with an announcement of amendments to the Banking Regulation Act, the Banking Companies Act, and the Reserve Bank of India Act, which should structurally strengthen the sector and bolster stakeholder confidence," said Krishnan Sitaraman, senior director and deputy chief ratings officer at Crisil Ratings Ltd.
That apart, to enhance business activities in the GIFT International Financial Services Centre (IFSC), the government said it will set up a single window IT system for registration and approvals from International Financial Services Centres Authority (IFSCA), Special Economic Zone (SEZ) authorities, Goods and Services Tax Network (GSTN), Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority of India (IRDAI). It will also permit acquisition financing by IFSC banking units of foreign banks.
“The Union Budget clearly emphasises the growth aspirations of our nation and the vital role of GIFT City in India’s growth story. The policy support laid out by the Union government will certainly act as a catalyst in expediting the growth of GIFT City thus making it a vibrant global financial hub for domestic and international entities," said Tapan Ray, managing director and group chief executive, GIFT City.
“The far-reaching measures announced in the budget will go a long way in strengthening the ease of doing business in IFSC at GIFT City. The establishment of an EXIM Bank subsidiary would encourage emerging sectors such as aircraft & ship financing activities in GIFT City," said Ray.
