RBI consolidates 3,809 circulars into master directions, scraps 5,673 obsolete norms, to improve ease of compliance, says DG Murmu

Reserve Bank of India

The Reserve Bank of India (RBI) have undertaken overhaul its regulatory framework by consolidating 3,809 circulars in to updated master directions and scrapping 5,673 circulars that were found to be obsolete, to improve the ease of compliance, Deputy Governor Shirish Chandra Murmu said on November 28.

The project was initiated in June this year on the instructions of the RBI Governor Sanjay Malhotra and involved a cross-functional team from the Department of Regulation along with 37 officers from various other departments, Murmu said.

“The main objective of this exercise is to improve the ease of compliance and eventually ensure that the cost of compliance is also eased, however, it is not possible to quantify how much it would attribute in terms of reduction in cost of compliance,” Murmu said during a press conference in Mumbai.

Murmu added that while the consolidation exercise has currently resulted in 244 master directions, there is no rigid view that the number must be maintained at this level going forward.

The master circulars have now been split function-wise and mapped across 11 categories of regulated entities. Frequently Asked Questions (FAQs) and illustrations, which earlier formed part of annexures, have now been integrated into the main master directions to improve clarity and ease of understanding, he added.

Murmu further said that any circular issued midway during the year will now be added as an amendment to the concerned master direction, and all master circulars will be updated within a period of one year.

Further, the RBI issued draft Master Directions on Digital Banking Channels Authorisation, 2025, seeking feedback from banks and other stakeholders.

Last month, RBI proposed to repeal about 9,000 circulars to reduce the regulatory burden and compliance costs, apart from timely re-evaluation of the currency of existing instructions.

In a statement, the central bank further said it has undertaken a comprehensive exercise of consolidating the regulatory instructions currently administered by the Department of Regulation, on an ‘as is’ basis.

The existing universe of regulatory instructions issued up to October 9, 2025, have been consolidated into 238 Master Directions, across 11 types of regulated entities on up to 30 functions / areas, it said.