RBI consolidates 9,000 circulars into 244 Master Directions for enhanced ease of doing business. Details here
The Reserve Bank of India (RBI) on Friday announced the issuance of a comprehensive set of Consolidated Master Directions (MDs), marking one of its most extensive regulatory reorganisations to date. The initiative streamlines more than 9,000 existing circulars, directions and guidelines into 238 function-wise MDs, aimed at improving regulatory clarity, ease of access and compliance for regulated entities.
According to the RBI, the consolidation exercise was undertaken by its Department of Regulation after recognising the need to modernise and simplify India’s regulatory framework. Over the years, the central bank had issued multiple instructions under various Acts, resulting in a growing regulatory perimeter and overlapping directives.
A total of 244 Master Directions have now been issued, replacing approximately 3,500 earlier circulars, notifications and guidelines. The RBI has also published lists of circulars to be repealed and those that will continue as standalone instructions.
“These 244 MDs consolidate all the regulatory instructions issued to the REs over several decades which are currently administered by Department of Regulation,” Shirish Chandra Murmu, Deputy Governor, RBI told at a press conference.
The newly issued Master Directions span 11 categories of regulated entities, including commercial banks, small finance banks, payments banks, regional rural banks, local area banks, co-operative banks, all-India financial institutions, NBFCs, asset reconstruction companies and credit information companies. Instructions relating to NABARD-regulated entities such as regional rural banks and state and central co-operative banks were consolidated in consultation with NABARD.
Drafts of the consolidated MDs were placed on the RBI website for public comments in October 2025, and the central bank received over 770 responses from stakeholders. While several suggestions sought regulatory changes beyond the scope of consolidation, the RBI noted that all relevant inputs were considered while finalising the documents.
The central bank stated that the consolidation is expected to reduce compliance burden, enhance transparency and support its broader objective of improving the ease of doing business within the financial sector.
