The Reserve Bank of India has issued 64 consolidated Master Directions covering supervisory instructions administered by its Department of Supervision. According to reports from The Hindu BusinessLine, this initiative represents a significant step toward simplifying regulatory compliance for regulated entities. The new directions consolidate 628 existing circulars, including Master Circulars and earlier Master Directions, into a streamlined framework covering 11 categories of regulated entities. As per the latest circular dated July 31, 2026, these directions are now effective from April 8, 2026, marking a comprehensive overhaul of the supervisory framework.
The consolidated framework covers multiple categories of financial institutions and service providers. As reported by The Hindu BusinessLine, the 11 categories include commercial banks, non-banking financial companies (NBFCs), urban and rural cooperative banks, regional rural banks (RRBs), small finance banks, payment banks, local area banks, asset reconstruction companies, all-India financial institutions and credit information companies. The directions have been organised across up to nine functional areas, creating a single reference point for supervisory instructions and improving consistency across the regulatory framework. According to the RBI circular, these final documents consolidate all existing directions administered by the Department of Supervision on an 'as is' basis.
Prior to the final rollout, the RBI had placed draft directions in the public domain for feedback in April. According to The Hindu BusinessLine, the central bank received 767 comments from stakeholders and incorporated suggestions that improved the clarity and accuracy of the framework. Policy-related recommendations beyond the scope of the consolidation exercise will be examined separately, ensuring comprehensive stakeholder engagement in the regulatory reform process. Public comments were also invited on the draft Master Directions and the list of circulars to be withdrawn, with suggestions that enhanced clarity and accuracy being incorporated into the final version.
Alongside the new Master Directions, the RBI has withdrawn 628 supervisory circulars with immediate effect. As reported by The Hindu BusinessLine, these include instructions that have now been incorporated into the consolidated framework as well as circulars that had become obsolete over time. The RBI has clarified that actions already taken or proceedings initiated under the withdrawn circulars will continue to be governed by the provisions that were in force at the time the actions were undertaken, ensuring continuity in regulatory enforcement. A separate record of withdrawn circulars is available on the RBI website under Notifications → Circulars Withdrawn → Circulars withdrawn by the Department of Supervision.
