RBI Consolidates Regulatory Instructions into 238 Draft Master Directions

In a significant move towards regulatory simplification, the Reserve Bank of India (RBI) has consolidated the existing universe of regulatory instructions issued up to October 9, 2025 into 238 Draft Master Directions. This consolidation spans 11 types of regulated entities, including banks, NBFCs, payment system operators, and others. Importantly, the consolidation also incorporates Scale Based Regulations (SBR) for NBFCs, reflecting the RBI’s risk-based and size-oriented approach to supervision.

As part of this initiative, approximately 9,000 circulars, including Master Circulars and Master Directions currently administered by the Department of Regulation, are proposed to be repealed. This is intended to reduce duplication, simplify compliance, and provide a more coherent regulatory framework for all stakeholders.

Key Highlights

  • 238 Draft Master Directions now consolidate prior instructions across 11 entity types.
  • Scale Based Regulations (SBR) for NBFCs included to align regulatory requirements with entity size and systemic importance.
  • ~9,000 circulars (Master Circulars / Master Directions) proposed for repeal.
  • Improved clarity, accessibility, and reduced compliance complexity for regulated entities.

Comparison: Current Regulatory Instructions vs. Draft Master Directions

Aspect Current Framework Proposed Draft Master Directions
Number of Circulars / Directions ~9,000 (including Master Circulars / Master Directions) 238 Draft Master Directions
Entity Coverage Various, across banks, NBFCs, others (scattered) 11 types of regulated entities, including SBR for NBFCs
Compliance Complexity High, due to scattered circulars and overlapping instructions Lower, streamlined instructions and consolidated guidance
Relevance / Redundancy Many circulars overlap or are outdated Eliminates duplication; all instructions consolidated
Ease of Reference Difficult, circulars are scattered across years High, single source for all consolidated regulatory instructions

🪔 Pre-Diwali Cleaning for Regulators

Think of this consolidation as RBI’s “pre-Diwali cleaning”. Just like sweeping out old clutter and decorating your home before the festival, the RBI is removing outdated and redundant circulars to give regulated entities a clean, streamlined, and easy-to-navigate regulatory framework.

This initiative is not just housekeeping—it ensures that compliance is simpler, clearer, and more effective, while helping regulators focus on current and meaningful instructions rather than sifting through thousands of legacy circulars.

✨ A brighter, cleaner regulatory landscape for everyone!

Proposed Repealed Circulars

A detailed list of circulars proposed to be repealed is attached here. Regulated entities are encouraged to review the list carefully to understand which directives will remain relevant.

This consolidation highlights RBI’s ongoing commitment to regulatory clarity, transparency, and effective risk-based supervision, making compliance easier while maintaining robust oversight.

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