Alongside the new Master Directions, the RBI has withdrawn 628 supervisory circulars with immediate effect
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As part of its ongoing efforts to simplify regulatory compliance, the Reserve Bank of India (RBI) has issued 64 consolidated Master Directions covering supervisory instructions administered by its Department of Supervision. The move is aimed at making compliance requirements easier for regulated entities to understand and implement while reducing regulatory burden.The new directions consolidate 628 existing circulars, including Master Circulars and earlier Master Directions, into a streamlined framework covering 11 categories of regulated entities. These include commercial banks, non-banking financial companies (NBFCs), urban and rural cooperative banks, regional rural banks (RRBs), small finance banks, payment banks, asset reconstruction companies, all-India financial institutions and credit information companies.multiple functional areasThe directions have been organised across multiple functional areas, creating a single reference point for supervisory instructions and improving consistency across the regulatory framework.Ahead of the final rollout, the RBI had placed draft directions in the public domain for feedback in April. The central bank received 767 comments from stakeholders and incorporated suggestions that improved the clarity and accuracy of the framework. Policy-related recommendations beyond the scope of the consolidation exercise will be examined separately.Alongside the new Master Directions, the RBI has withdrawn 628 supervisory circulars with immediate effect. These include instructions that have now been incorporated into the consolidated framework as well as circulars that had become obsolete over time.However, the RBI clarified that actions already taken or proceedings initiated under the withdrawn circulars will continue to be governed by the provisions that were in force at the time the actions were undertaken.Published on July 31, 2026
