RBI Consolidates 9,000 Circulars into 238 Master Directions to Simplify Banking Rules
SDG 9: Industry, Innovation and Infrastructure | SDG 16: Peace, Justice and Strong Institutions
Institutions: Reserve Bank of India (RBI) | Ministry of Finance
The Reserve Bank of India (RBI) has placed Draft Master Directions/Guidelines on its website, commencing a major effort to simplify and consolidate its regulatory framework. This exercise is specifically designed to reduce the regulatory burden and compliance costs for financial institutions by improving the clarity and accessibility of existing rules.
The move involves condensing approximately 9000 circulars (including various Master Circulars and Instructions) into 238 streamlined Master Directions. This strategic consolidation, which applies to 11 types of regulated entities across 30 functions/areas, will lead to the repeal of the large volume of fragmented previous instructions.
The drafts are open for public comments until November 10, 2025. The consultation focuses specifically on the documentsβ completeness and accuracy, signifying a major step in the ongoing policy of regulatory rationalization.
This reform is a major step toward regulatory rationalization, enhancing the ease of compliance, and making financial sector policy more transparent, efficient, and accessible for all stakeholders.
What are Master Directions in the RBIβs regulatory framework? β Master Directions are consolidated, principle-based policy documents issued by the RBI that streamline and simplify all relevant instructions on a specific subject for a particular type of regulated entity, enhancing regulatory clarity and replacing numerous fragmented circulars.
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