RBI Invites Comments on the Draft Consolidation of Supervisory Instructions to Reduce Compliance Burden

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:

1. 1. Completeness
   2. 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.