The Reserve Bank of India (RBI) has introduced a significant overhaul of how its regulatory rules are organised, saying the move is meant to reduce confusion for regulated entities. The bank stated that it has issued numerous directions over the years, under the statutory powers conferred upon it by various Acts and added in the same paragraph that it has been “mindful of compliance burden to the Regulated Entities (REs)” as it works to “optimise its regulatory framework.”

The RBI said this restructuring marks a shift in how it communicates with financial institutions. In its words, the central bank has undertaken a fundamental reorganisation of the regulatory instructions administered by its Department of Regulation – marking a paradigm shift in its regulatory communication. It added that the exercise involved consolidating more than 9,000 existing circulars/guidelines into 238 function-wise Master Directions (MDs).

As part of the process, the RBI said it has also worked with other institutions where needed. It noted that instructions issued by NABARD were also consolidated in consultation with NABARD, adding that the exercise is expected to “enhance clarity, ease of access, and reduce compliance burden for REs, thereby supporting the broader objective of improving ease of doing business.”

The central bank said the consolidation covered a wide range of financial institutions. It noted that instructions contained in approximately 3500 directions, circulars, and guidelines were consolidated into 238 Master Directions across 11 types of regulated entities.

"For this purpose, the 11 types of regulated entities identified are Commercial Banks; Small Finance Banks; Payments Banks; Local Area Banks; Regional Rural Banks; Urban Co-operative Banks; Rural Co-operative Banks; All India Financial Institutions; Non-Banking Financial Companies; Asset Reconstruction Companies; and Credit Information Companies. Instructions contained in the remaining directions/circulars were identified as obsolete and marked for repeal upon issuance of the consolidated MDs."

The regulator said that earlier documents identified as no longer relevant will now be phased out. According to the RBI, the remaining instructions that were not merged were identified as obsolete and marked for repeal once the consolidated MDs are issued.

To ensure accuracy, the RBI opened the draft documents for public feedback. It said that “the drafts of these 238 MDs were placed on the website of the Reserve Bank for public comments regarding completeness and accuracy,” referring to its press release dated 10 October 2025. It added that this also included the “list of circulars that were proposed to be repealed” and another list of those that would remain as standalone.

The central bank received detailed feedback from various stakeholders and said it reviewed these comments to finalise the documents. It stated that it had received over 770 comments from multiple stakeholders on the draft MDs,” adding that while many suggestions were for regulatory changes, which were outside the scope of this consolidation exercise,” the remaining inputs have been duly considered while finalising the consolidated MDs.”

Following this process, the RBI announced the release of the final documents. It said that it has issued 244 Master Directions consolidating the instructions currently administered by the Department of Regulation on an ‘as-is’ basis, explaining that these will be cohesively organised across various regulatory areas and will serve as the sole library of regulations administered by the Department of Regulation.

The central bank also said that older directions that are no longer required have been formally withdrawn. It noted that a “List of 944 circulars that are being repealed/withdrawn following the issue of these consolidated Master Directions” is available in the section titled “Circulars withdrawn by the Department of Regulation,” ensuring transparency as the new framework comes into effect.