RBI to repeal 9,000 circulars in major regulatory simplification drive

In a major move to simplify India’s financial regulatory landscape, the Reserve Bank of India (RBI) on Friday announced a proposal to repeal approximately 9,000 circulars, including Master Directions and Master Circulars, as part of an extensive consolidation exercise aimed at reducing regulatory burden and compliance costs for financial institutions.

The central bank stated that the initiative is part of its ongoing efforts to optimise the regulatory framework by eliminating redundancy, improving clarity, and ensuring timely re-evaluation of existing instructions. The consolidated regulatory framework will bring together existing directions into 238 Master Directions covering 30 functional areas across 11 categories of regulated entities.

According to the RBI, the move is designed to ensure that the regulatory framework remains current, coherent, and easier to navigate. The consolidation, carried out on an ‘as is’ basis, compiles all regulatory instructions issued up to October 9, 2025, under the Department of Regulation.

“Consequently, approximately 9,000 circulars (including Master Circulars and Master Directions) administered by the Department of Regulation will be repealed,” the RBI said in a statement. The central bank has also invited public comments on the draft documents of the consolidation to ensure transparency and inclusivity in the reform process.

The RBI explained that over the years, a vast number of circulars were issued under various statutory powers conferred by multiple Acts, as the regulatory perimeter expanded and evolved. This progressive accumulation, combined with occasional gaps in formally repealing outdated directions when new ones were issued, has contributed to a fragmented regulatory structure.

While such complexity is a natural outcome of financial sector evolution, the RBI acknowledged that overlapping and outdated instructions had made compliance and supervision more challenging. The ongoing consolidation seeks to address these issues and improve regulatory coherence.

The exercise builds upon the earlier work of the Regulations Review Authority (RRA), which was constituted to review and streamline the Reserve Bank’s regulatory and reporting requirements based on feedback from banks, financial institutions, and the public. By extending and institutionalising that effort, the RBI aims to create a more efficient, transparent, and up-to-date regulatory environment aligned with the needs of a modern financial system.