RBI: Repeals 628 Supervisory Circulars in India

• The Reserve Bank of India (RBI) has repealed 628 supervisory circulars following the issuance of 64 Consolidated Directions.
• The consolidation exercise aims to streamline the supervisory framework and reduce fragmentation across multiple circulars and instructions.
• Actions already taken or initiated under the repealed directions will continue to be governed by those provisions.

The RBI has clarified that actions already taken or initiated under the repealed directions will continue to be governed by those provisions.

The Reserve Bank of India's (RBI) Department of Supervision (DoS) has undergone significant changes in recent years, with various supervisory functions being merged into the department. As a result, the RBI has identified opportunities to consolidate and streamline its supervisory framework. To achieve this goal, the RBI has issued 64 Consolidated Directions, which bring together supervisory instructions from multiple sources, including erstwhile departments whose functions have been merged with the DoS. This consolidation exercise aims to reduce fragmentation across multiple circulars and instructions, making it easier for banks and other financial institutions to navigate and comply with regulatory requirements.

The RBI has taken a major step towards simplifying its regulatory framework by repealing 628 supervisory circulars. These circulars, which were issued over the years, have either been consolidated into the new Consolidated Directions or have become obsolete, redundant, or no longer relevant. The repeal of these circulars is effective from 31 July 2026, and banks and other financial institutions are expected to comply with the new regulatory framework. It's worth noting that actions already taken or initiated under the repealed directions will continue to be governed by those provisions.

The RBI's consolidation of supervisory instructions and repeal of 628 circulars are significant developments in the Indian banking regulations. The new Consolidated Directions aim to strengthen governance, compliance, and financial stability framework. Lawyers should watch for the potential impact on existing client relationships and compliance obligations, as actions taken under repealed directions will continue to be governed by those provisions. This development is likely to have far-reaching implications for banks and other financial institutions, which need to adapt to the new regulatory landscape.

Lawyers should watch for the potential impact on existing client relationships and compliance obligations, as actions taken under repealed directions will continue to be governed by those provisions.

Source: Original reporting via RBI Repeals of Circular