The Reserve Bank of India (RBI) has released draft consolidated supervisory instructions, covering multiple regulated entities and functional areas, as part of a major regulatory rationalisation exercise.
1. Objective of the Consolidation
The initiative aims to:
- Enhance clarity and accessibility of regulatory instructions
- Create a single, coherent supervisory framework
- Reduce the compliance burden on regulated entities
2. Repeal of Existing Circulars
A key feature of the exercise is:
- Repeal of 626 existing circulars
- Consolidation of scattered instructions into a streamlined and unified structure
3. Scope of the Draft Instructions
The draft framework:
- Covers various categories of regulated entities
- Addresses multiple supervisory and functional areas
- Seeks to eliminate overlaps and inconsistencies in existing guidelines
4. Public Consultation
- RBI has invited comments from stakeholders
- Feedback is sought on:
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- Completeness
- Accuracy of the draft instructions
- Comments can be submitted under the ‘Connect 2 Regulate’ framework
- The last date for submission is 8th May 2026
5. Conclusion
This consolidation exercise marks a significant step towards a simplified, transparent, and user-friendly regulatory environment, aligning supervisory expectations while easing compliance for regulated entities.
