RBI To Scrap Nearly 9,000 Circulars In Major Regulatory Overhaul; Know Why

Explaining the rationale, the RBI noted that over several decades, as regulatory frameworks evolved and expanded, numerous directions were issued under various Acts, leading to overlaps and inconsistencies.

The Reserve Bank of India (RBI) on Friday announced plans to repeal around 9,000 circulars as part of a broad initiative to simplify its regulatory framework, cut compliance costs, and ensure timely updates of existing rules.

The central bank said it has “constantly endeavoured to optimise the regulatory framework with a focus inter alia on reducing the regulatory burden and compliance costs, apart from timely re-evaluation of the currency of existing instructions.”

As part of this exercise, the RBI has consolidated all regulatory instructions issued up to October 9, 2025, by the Department of Regulation into 238 Master Directions. These cover 11 categories of regulated entities and span across 30 functional areas.

“Consequently, approximately 9,000 circulars (including Master Circulars / Master Directions) administered by the Department of Regulation will be repealed,” the central bank said in its statement.

The RBI has also invited public feedback on the draft consolidation documents.

Explaining the rationale, the central bank noted that over several decades, as regulatory frameworks evolved and expanded, numerous directions were issued under various Acts, leading to overlaps and inconsistencies. The RBI observed that while growing regulatory complexity is natural, “fragmentation in regulatory and supervisory powers” and the absence of clear repeals of outdated directions had added to the confusion.

The consolidation, it added, builds on the work of the Regulations Review Authority (RRA), which had earlier been tasked with streamlining regulations and reporting requirements based on feedback from banks, financial institutions, and the public.