RBI Scraps Over 9,000 Circulars To Optimise Regulations For 11 Sectors
All circulars applicable to commercial banks have been covered under 32 master directions, RBI Deputy Governor SC Murmu said.
In a major push to ease regulatory framework and improve compliance, the Reserve Bank of India on Friday scrapped over 9,000 circulars and consolidated rules into 244 Master Directions across 11 types of regulated entities.
The initial announcement was made in October for consolidating the regulatory instructions currently administered by the Department of Regulation.
"Today we will be issuing 244 consolidated master directions. These consolidate all regulations issued to entities over several decades since 1940," RBI Deputy Governor SC Murmu told reporters in Mumbai.
The changes are expected to significantly improve the accessibility of regulatory instructions for the regulated entities, thereby reducing their compliance cost. The consolidation of regulatory instructions separately for each type of regulated entities will improve the clarity on applicability of each instruction to a regulated entity, the RBI said.
The central bank will repeal 9,446 circulars. Among these, 3,809 have been subsumed or incorporated into master circulars and the rest 5,673 have been repealed for being obsolete.
All circulars applicable to commercial banks have been covered under 32 master directions. Banks will need to only follow directions listed under the master directions.
India's booming financial sector has long sought easier rulebooks as demand for services from a market of 1.4 billion people grows. The sector has drawn massive investments from foreign giants in recent years.
Murmu said the response from regulated entities "has been good" on the announced measures and all stakeholders were engaged for the process.
"As far as department of regulation is concerned, this is a one-time exercise. From here on, we will add to what has been built as a foundation," he said.
On bank licensing, the guidelines across various entities have been consolidated as well, Murmu said.
He further said in any situation where the regulations require any changes or updation, those will also be put within these master directions.
List Of Regulated Entities To Benefit
Commercial Banks
Small Finance Banks
Payments Banks
Local Area Banks
Regional Rural Banks
Urban Cooperative Banks
Rural Cooperative Banks
All India Financial Institutions
Non-Banking Financial Companies
Asset Reconstruction Companies
Credit Information Companies
