RBI Repeals over 9,000 Circulars, Consolidates Rules into 244 Master Directions to Ease Compliance
The RBI has scrapped 9,446 circulars and consolidated regulatory rules into 244 master directions to simplify compliance and improve ease of doing business.
The Reserve Bank of India has cast away over 9,000 circulars and consolidated rules into 244 master directions across 11 types of regulated entities in order to smoothen the regulatory framework and improve compliance. RBI has stated in a statement that it has recently undertaken a fundamental reorganization of the regulatory instructions administered by its Department of Regulation, making an ideal shift in its regulatory communication.
The comprehensive exercise includes consolidation of more than 9,000 existing circular and guidelines administered by Department of Regulation into 238 function-wise Master Directions (MDs), specific to each category of regulated entity.
The instructions issued by NABARD to Regional Rural Banks, State Co-operative Banks and Central Co-operative Banks were also consolidated in consultation with NABARD.
The central bank will repeal around 9,446 circulars. 3,809 among these have been subsumed or incorporated into master circulars and the rest 5,673 have been repealed for being obsolete. This exercise will enhance clarity, ease of access, and reduce compliance burden for REs, and would therefore support the broader objective of improving ease of doing business.