The Financial Sector Legislative Reforms Commission (FSLRC), set up in March 2011 to ensure better legislative framework in the financial sector and protect consumers' rights, has proposed setting up of a financial redressal agency to deal with consumer grievances in a time-bound manner.

It is likely to introduce a sunset clause to make legislation more effective.

The commission has also strongly pitched for a unified regulator to oversee the entire financial sector.

The FSLRC has said in its approach paper that the Reserve Bank of India (RBI) should continue as the monetary authority, the banking regulator and the payment system regulator.

However, all other sectors including insurance, pension, mutual fund etc should be brought under the ambit of a single regulator.

"We held several meetings and after extensive deliberations, we have felt that we need a strong and unified regulator to ensure effective and better operation and communication," said Justice BN Krishna, chairman, FSLRC, on Thursday.

The final report will be submitted to the government by March 24, 2013.