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RBI Scraps Thousands of Rules for Simpler Compliance
28 Nov
Summary
- RBI replaced 9,446 circulars with 244 simplified Master Directions.
- The overhaul aims to significantly ease compliance burdens for entities.
- New framework integrates digital banking norms and covers 11 entity types.
The Reserve Bank of India has initiated a substantial regulatory reform, dismantling thousands of outdated circulars to introduce a streamlined rulebook. This extensive cleanup effort, described as one of its largest, consolidates numerous guidelines into 244 new Master Directions, significantly simplifying compliance for financial institutions.
This initiative addresses the compliance burden by optimizing and rationalizing regulatory instructions, incorporating feedback from regulated entities. A total of 9,446 circulars have been repealed, some accumulated over decades. The revised framework also modernizes norms for rapidly growing digital banking channels.
The Master Directions are now categorized for 11 types of regulated entities, enhancing the accessibility and clarity of rules for commercial banks, NBFCs, and others. This overhaul marks a significant advancement in simplifying India's financial regulatory landscape, providing greater clarity on applicable regulations for each entity.
