In one of the largest regulatory simplification exercises in its history, the Reserve Bank of India (RBI) has completed a massive consolidation of its rulebook. A total of 9,445 circulars—some dating back to the 1940s—have now been streamlined into 244 function-wise Master Directions/Master Directives applicable to various regulated entities.
This clean-up marks a major milestone for India’s financial sector, promising clearer rules, lower compliance burden and greater consistency across the regulatory framework.
What Exactly Has RBI Done?
RBI has undertaken a structured, multi-year effort to reorganise and modernise its regulatory instructions:
Over 9,000 circulars rationalised or repealed
— Many were outdated, duplicated, or superseded by more recent instructions.
244 function-wise Master Directions created
— These consolidate all still-relevant guidelines into comprehensive, easy-to-navigate documents.
3,800+ active instructions subsumed
— All live guidance has now found place within the appropriate Master Direction(s).
5,600–5,700 obsolete circulars scrapped
— Removing decades-old legacy instructions reduces clutter and confusion.
Coverage:
— Regulatory instructions issued by the Department of Regulation up to 9 October 2025
— Applicable to 11 categories of regulated entities
— Spread across ~30 regulatory functions
This systematic pruning ensures every institution now works with a cleaner and more current rulebook.
Objectives Behind the Consolidation
RBI’s circular consolidation initiative is built on three core goals:
1. Ease of Doing Business
Institutions no longer need to sift through thousands of circulars to determine applicable norms.
2. Reduce Compliance Costs
Simplified access to regulations and elimination of duplication cuts operational effort.
3. Remove Overlaps & Inconsistencies
By merging related instructions and scrapping outdated ones, RBI ensures clearer, conflict-free guidance.
Key Features of the New Master Directions
Function-wise & Entity-wise Structure
Instead of theme-wise circulars scattered over decades, RBI now provides separate Master Directions for:
Banks
NBFCs
Urban cooperative banks
All India financial institutions
Other regulated entities
Each entity can easily identify which regulatory requirements apply to them.
Integrated FAQs and Advisory Content
Earlier, clarifications and illustrations were issued through separate FAQs or supplementary notes.
Now these have been absorbed into the main text of the Master Directions for seamless reference.
Forms and Templates as Annexures
Only formats, reporting templates and procedural forms remain as annexures for convenience.
Practical Impact on Banks, NBFCs & Other Institutions
The changes will significantly alter how compliance teams work on a day-to-day basis:
1. One-stop Reference
Instead of tracking thousands of historical circulars, teams will follow the relevant Master Direction—for example:
Prudential norms
Governance
Customer service
Outsourcing
Digital channels and authorisations
2. Annual Updates for Version Control
RBI has announced that:
New instructions will be issued as amendments to the corresponding Master Direction.
Each Master Direction will be updated at least once each year.
This ensures institutions always work with the latest consolidated document.
3. Clear Mapping for Existing Checklists
RBI has released:
A list of repealed circulars
A list of circulars that remain standalone
Institutions can now align their internal compliance checklists and monitoring tools with the new framework smoothly.
How This Links to RBI’s Earlier Consolidation Draft
This final rollout builds upon the October 2025 draft consolidation, where RBI had:
Proposed 238 Master Directions
Suggested repealing ~9,000 circulars
Invited feedback on the “Connect 2 Regulate” platform
After industry input and further refinement, the final number now stands at 244 Master Directions, covering additional areas such as digital banking channel authorisation.
At a Glance: Key Numbers
Total circulars examined: ~9,446
Master Directions finalised: 244
Circulars subsumed: 3,800+
Circulars repealed: ~5,600–5,700
Regulated entity categories covered: 11
Regulatory functions covered: ~30
RBI’s consolidation of 9,445 circulars into 244 Master Directions is a landmark transformation in India’s regulatory landscape. By simplifying, modernising and clarifying the compliance framework, RBI has significantly eased the burden on banks, NBFCs and other financial institutions.
This overhaul will help institutions strengthen governance, improve compliance accuracy and focus more on serving customers rather than interpreting outdated rules.