1. Main Note - [[About the RBI#Role as Regulator|About the RBI]] 2. [Department of Regulation (DoR)](Department of Regulation) serves as the primary regulatory authority within the Reserve Bank of India overseeing a diverse range of financial entities, including 1. Commercial Banks, 2. Cooperative Banks, 3. Non-Banking Financial Companies (NBFCs), 4. Asset Reconstruction Companies ([ARCs](Asset%20Reconstruction%20Companies%20(ARCs).md)), 5. All India Financial Institutions (AIFIs) *([those regulated by the RBI](All%20India%20Financial%20Institutions%20(AIFI).md#AIFIs%20regulated%20by%20the%20RBI))* 6. Credit Information Companies. 3. As the Indian financial system has evolved, many regulatory instructions have been issued over the years. 4. **2016** 1. Within the contours of the Rules/ Regulations, Reserve Bank of India also issues directions to operationalise and implement these frameworks. 2. These directions lay down the modalities as to how the relevant business or activity has to be conducted by the concerned entity ensuring compliance with the underlying regulations. 3. Since January 2016, RBI had started issuing Master Directions on all regulatory matters to streamline compliance in pursuance of the decision announced in the [Fourth Bi-monthly Monetary Policy Statement, 2015-16 on September 29, 2015](https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=35087). They would replace the Master Circulars issued on that subject. 1. Master Circulars were updated and placed on July 1 each year on the website (Notifications → Master Circulars). The various departments in the Bank began consolidating circulars and notifications and started issuing annual master circulars from 2003–04. 2. Master Circulars in [History of The Reserve Bank of India (1997-2008)-Volume V](RBI_History%20of%20The%20Reserve%20Bank%20of%20India%20(1997-2008)_Volume%20V.pdf#page=638&selection=33,0,35,48) 4. Each Master Direction covers a specific subject matter and consolidates all instructions, guidelines, and operational requirements issued on that subject. 5. They bring together directives and instructions flowing from Rules (framed by the Government) and Regulations (framed by the RBI), which were earlier scattered across multiple Circulars, Directions, Notifications, and Master Circulars issued under various Acts, including those relating to banking, non-banking financial companies, and foreign exchange transactions. 6. Any change in the rules, regulations or policy is communicated during the year by way of notifications of circulars/amendments or Press Releases. 1. For instance, the RBI issues directions to **Authorised Persons (APs)** through _A.P. (DIR Series) Circulars_ (under Section 11 of the Foreign Exchange Management Act (FEMA), 1999) regarding any change in regulations or the manner in which foreign exchange transactions are to be conducted with customers or constituents. 2. Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications. 7. The Master Directions gets updated suitably and simultaneously whenever there is a change in the Rules, Regulations or Policy. In other words, 8. Consequently, the earlier set of [Master Circulars](https://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx) issued on various subjects were withdrawn once corresponding **Master Directions** were published. 9. To enhance clarity, [FAQs](https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx) are issued by the RBI wherever necessary providing simplified explanations of Rules, Regulations, and Directions in plain language. 10. Thus the regulatory communication hierarchy flows from _Rules → Regulations → Directions → Circulars → Master Directions → FAQs_. 5. **Regulations Review Authority 2.0**: 1. On [Apr 15, 2021](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=51421), the Reserve Bank constituted the Regulations Review Authority 2.0 (RRA 2.0) in 2021 to review the regulatory prescriptions internally as well as by seeking suggestions from the RBI regulated entities and other stakeholders with a view to their simplification and ease of implementation. 2. It reviewed all the regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions, 3. Based on detailed deliberation, RRA 2.0 finalized its report on June 10, 2022. 4. One of the key recommendations of the report was to create a Regulatory Handbook, consolidating the regulations applicable to regulated entities as a quick reference guide. 5. Accordingly, DoR has compiled its regulatory instructions in an easily accessible [handbook](https://www.rbi.org.in/Scripts/Publications.aspx?publication=Occasional) titled **[“Regulations at a Glance”](https://rbi.org.in/scripts/PublicationsView.aspx?Id=23136).** 6. RRA had inter alia recommended the withdrawal of 714 circulars and discontinuation / merger / conversion to online submission of 65 returns. 7. [List of Standalone Circulars issued by the Department of Regulation](https://rbi.org.in/Scripts/BS_ViewListofstandalonecirculars.aspx) 8. [List of Withdrawn Master Circulars](https://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx) 9. [List of Withdrawn Circulars](https://rbi.org.in/scripts/NotificationUserWithdrawnCircular.aspx) ## Consolidation Exercise - October 10, 2025 1. On [Oct 10, 2025](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=61407), RBI issued press release to inform that the existing universe of regulatory instructions issued up to October 9, 2025 have been consolidated into 238 Master Directions, across 11 types of regulated entities on up to 30 functions / areas. 1. This exercise of consolidation carries forward the work carried out by the Regulations Review Authority (RRA 2.0) 2. Consequently, approximately 9000 circulars (including Master Circulars / Master Directions) administered by the Department of Regulation will be repealed. 3. Here is the explanatory [[RBI_Press Release_251010_Explanatory Note on Consolidation of Regulations _RBI.pdf|note]] on consolidation of regulations. 4. [List](https://www.rbi.org.in/Scripts/BS_ViewREwiseDraftDirections.aspx) of 238 Master Directions-DRAFT. 5. [List](https://www.rbi.org.in/Scripts/BS_ViewCircularstobeRepealed.aspx) of 9000 circulars (including Master Circulars / Master Directions) to be Repealed/Withdrawn 6. This exercise is expected to significantly *improve the accessibility of regulatory instructions* for the regulated entities, thereby reducing their compliance cost. 7. It is also expected to improve the clarity on applicability of each instruction to a regulated entity. ## November 28, 2025 1. ==[November 28, 2025](RBI_Press%20Release_20251128_Reserve%20Bank%20of%20India%20issues%20Consolidated%20Master%20Directions.pdf) - RBI released a final set of consolidated Master Directions (MDs).== 2. [November 28, 2025](RBI_20251128_Notification_Consolidation%20of%20Regulations%20–%20Withdrawal%20of%20circulars.pdf) - RBI released the notification titled "Consolidation of Regulations – Withdrawal of circulars", announcing the release of 244 Master Directions consolidating the instructions currently administered by the Department of Regulation (DoR) of the Reserve Bank of India. 1. These 244 Master Directions encompass the instructions issued by DoR as well as the erstwhile Departments which have since been merged into DoR either partly or fully. 2. Further, the extant instructions considered as obsolete were not been included in the consolidated Master Directions, as they are no longer relevant. 3. Accordingly, 9445 circulars listed in the [Annex](https://www.rbi.org.in/Scripts/NotificationUserWithdrawnCircular.aspx), which are either circulars whose instructions have been consolidated or circulars which have become obsolete / redundant, are withdrawn by the Reserve Bank with immediate effect and are hereby repealed. ## Regulations/Master Circulars and Directions 1. [Acts](https://rbi.org.in/Scripts/Act.aspx) 2. [Rules](https://rbi.org.in/Scripts/Rules.aspx) 3. [List of Regulations](https://rbi.org.in/Scripts/Regulations.aspx) 4. [Master Circulars](https://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx) 1. [List](https://www.rbi.org.in/Scripts/BS_ViewStandaloneCirculars.aspx) of standalone circulars - circulars / instructions issued on areas such as scheduling of banks; changes in names of banks; AML/TF list updates; changes in CRR / SLR; etc. have been retained as standalone circulars. 5. [Master Directions](https://rbi.org.in/scripts/BS_ViewMasterDirections.aspx) 6. [[Schemes by the RBI|List of Schemes]] ## Regulations of entities/Infrastructures 1. The Reserve Bank of India (RBI) regulates and supervises the major part of the financial system through its various departments. 2. List of entities/Infrastructures regulated by RBI 1. [RBI Regulated Entities](https://www.rbi.org.in/scripts/FinancialAgents.aspx) 1. [[Types of Banks]] 2. Non-Banking Financial Companies ([NBFCs](NBFCs.md)) 1. [Housing Finance Companies](Department%20of%20Supervision.md#Housing%20Finance%20Companies) (HFCs) - they regulated by RBI since August 2019 3. [[All India Financial Institutions (AIFI)]] 4. [[Primary Dealers (PDs)]] 5. Authorised Dealers 6. [PPF and SCCS](National%20Savings%20Scheme.md) -  transactions, procedures, and commissions are handled by agency banks regulated by the RBI, while interest rates and policy are set by the central government. 7. Money Market - [Call, Notice and Term Money](Call,%20Notice%20and%20Term%20Money.md), Certificate of Deposit and the Commercial Paper and Non-Convertible Debentures of original or initial maturity upto one year 2. [Financial Market Infrastructures regulated by RBI](https://rbi.org.in/scripts/Bs_viewcontent.aspx?Id=2706) in [Oversight of Payment and Settlement Systems](https://rbi.org.in/scripts/FS_Overview.aspx?fn=9) 3. In India, there are several agencies entrusted with the task of regulation and supervision of different institutions and market participants in the financial sector. While the specific objective may vary from depositor protection and investor protection to market regulation, their common concern is maintaining financial stability. 4. SEBI - The Securities and Exchange Board of India (SEBI) regulates and supervises the capital markets, and thus institutions such as 1. stock exchanges, 2. mutual funds and other asset management companies, 3. securities dealers and brokers, 4. merchant bankers, 5. credit rating agencies, and 6. venture capital funds 7. foreign portfolio investors 1. They register under the SEBI (Foreign Portfolio Investors) Regulations, 2014. So RBI does not regulate them, but their capital account transactions are governed under FEMA by the RBI. 8. Board of SEBI: 1. A nominee of RBI (usually the Deputy Governor of RBI) is on the Board of SEBI along with nominees of Ministry of Finance and Department of Company Affairs. 2. As per Section 4 of the SEBI Act, 1992, the Board consists of: 1. Chairman: Nominated by the Central Government. 2. RBI Nominee: One member nominated by the Reserve Bank of India (usually a Deputy Governor). 3. Ministry of Finance/Corporate Affairs Nominees: Two members from the Union Ministry of Finance and the Ministry of Corporate Affairs (often referred to as Department of Company Affairs). 4. Other Members: Five other members nominated by the Union Government (at least three being full-time members). 5. IRDAI 1. Companies in the insurance sector are regulated by Insurance Regulatory Development Authority (IRDA). Banks are permitted to be involved in insurance activity through joint ventures / equity participation/selling agency type arrangements. 2. IRDAI was formally constituted in April 2000** following the IRDA Act of 1999 6. DCA - The Department of Company Affairs (DCA) regulates the deposit taking activities of non-banking non-financial companies and also some activities of NBFCs. 7. Several mechanisms exist to ensure coordination among the various regulators in the financial system. There is exchange of information on a routine basis and on occasions through special request. ## Timelines for Regulatory Approvals [Link](https://rbi.org.in/Scripts/Timlines.aspx) ## Restructuring of Departments (2014 and 2019) 2. [Nov 3, 2014](RBI_Annual%20Report_2015.pdf#page=149&selection=118,0,118,27) *(restructuring of several departments effected from this date)* 1. Department of Banking Operations and Development (DBOD) was renamed to Department of Banking Regulation (DBR) 2. Urban Banks Department (UBD) was [split](RBI_Annual%20Report_2015.pdf#page=149&selection=118,0,118,27) into Department of Cooperative Bank Regulation (DCBR) and Department of Cooperative Bank Supervision (DCBS). Urban Banks Department (UBD) ceased to exist since then. 3. Department of Non-Banking Supervision (DNBS) was split into Department of Non-Banking Regulation (DNBR) and Department of Non-Banking Supervision (DNBS). DNBS ceased to exist since then. 3. [Nov 1, 2019](RBI_Press%20Release_20191101_Reserve%20Bank%20of%20India%20Reorganises%20its%20Regulation%20and%20Supervision%20Departments.pdf) - Before this date, the regulatory functions relating to financial sector entities were carried out through three separate departments, viz., Department of Banking Regulation, Department of Non-Banking Regulation and Department of Cooperative Banking Regulation. Effective this date, they were into unified Department of Regulation with effect from November 01, 2019. 1. So DoR = DBR + DNBR + DCBR 4. Similarly, RBI announced the merger of the all supervisory departments Department of Banking Supervision (DBS), Department of Non-Banking Supervision (DNBS), and Department of Co-operative Bank Supervision (DCBS) to create a unified **Department of Supervision (DoS)** (often referred to in the context of the 2019 restructuring). 1. ==So now DoS = DBS + DNBS + DCBS, along with Board for Financial Supervision (BFS) ## Other Departments on Regulation 1. [Financial Markets Regulation Department](https://rbi.org.in/Scripts/AboutUsDisplay.aspx?pg=Depts.htm#FMRD) 1. As part of restructuring of several departments effected from Nov 3, 2014, Financial Markets Department (FMD) was split into Financial Markets Regulation Department (FMRD) and Financial Markets Operations Department (FMOD). FMD ceased to exist since then. 2. Payment Systems 1. The Payment and Settlement Systems Act, 2007 (PSS Act) has designated and confers upon the RBI the right to regulate and supervise Payment Systems within the country through a Board to be known as the "Payments Regulatory Board". 2. The Department of Payment and Settlement Systems (DPSS) (formed in 2005) of RBI serves as the Secretariat to the PRB. 3. Related Notes - [Payment Systems](Payment%20Systems.md) & [Oversight of Payment Systems](Oversight%20of%20Payment%20Systems.md) 3. Foreign Exchange 1. Under the Foreign Exchange Management Act (FEMA), 1999, the Central Government frames rules for capital and current account transactions, while the [Reserve Bank of India (RBI)](https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=829) issues regulations, manages, and supervises foreign exchange, primarily through its Foreign Exchange Department (FED) 4. Consumer Protection 1. The Consumer Education and Protection Department (CEPD) of the Reserve Bank of India is responsible for protecting consumer interests through [Ombudsman Scheme](Ombudsman%20Scheme.md) (RB-IOS, latest one), and those not covered under the scheme through CEP cells, and regulating grievance redressal for financial services. ## Financial Stability Report 1. [Financial Stability Report](https://rbi.org.in/Scripts/FsReports.aspx) is released in June and December. It is on website->Publications->Half-Yearly. 2. It has a Section - Important Regulatory Measures/Regulatory Initiatives in the Financial Sector ## Handbook of Regulation 1. ==[Feb 27, 2025](RBI_Press%20Release_20250227_Release%20of%20Handbook%20on%20“Regulations%20at%20a%20Glance”.pdf) - RBI announced the release of [Handbook on Regulations at a Glance](https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=23136)== ## Related Notes 1. [Regulators in India](Regulators%20in%20India.md) 2. [About the RBI](About%20the%20RBI.md) 3. [Department of Supervision](Department%20of%20Supervision.md) 4. [Financial Sector Assessment Program (FSAP)](Financial%20Sector%20Assessment%20Program%20(FSAP).md) 5. [Financial Stability Department](Financial%20Stability%20Department.md) ## References ### [[Speeches & Media Interactions|Speeches]] 1. Rajeshwar Rao. (Nov 27, 2024). RBI: Navigating 90 Years of Legacy, Regulation, and Aspiration. (Opening remarks delivered by Shri M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India - November 22, 2024 - at the “High-Level Policy Conference of Central Banks in the Global South” organised by the Reserve Bank of India as a part of commemoration of its 90th year at Mumbai, India). [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1485) 2. Sanjay Malhotra. (Nov 07, 2025). ==The Evolving Facets of Regulations==. Keynote Address by Shri Sanjay Malhotra, Governor, Reserve Bank of India at the 12th SBI Banking & Economics Conclave - 2025, Mumbai, November 7, 2025. [Link](https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1529) ### [[Publications (Data Releases) & Research#Research|Research]] [Groups/Committees](Groups%20and%20Committees.md) 1. 1. RBI. (4 June, 2002). *Report of The Technical Group on Market Integrity.* [Press Release](RBI_Press%20Release_20020604_Technical%20Group%20on%20Market%20Integrity%20submits%20Report.pdf) [pdf](RBI_Group-Committee_20020604_Report%20of%20The%20Technical%20Group%20on%20Market%20Integrity.pdf) | [Link](https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=280) 2. RBI. (March 30, 2009). Report (is in 6 volumes, distributed by Foundation Books) of the Committee on Financial Sector Assessment. [Link](Financial%20Sector%20Assessment%20Program%20(FSAP).md#Committee%20on%20Financial%20Sector%20Assessment%20(CFSA)) 1. RBI. (Sept 14, 2006). Govt of India constituted Committee on Financial Sector Assessment. [Press Release](RBI_Press%20Release_20060914_RBI%20Announces%20Constitution%20of%20a%20Committee%20on%20Financial%20Sector%20Assessment.pdf) 2. This is India's self assessment of financial sector stability and development, which is different from the Financial Sector Assessment Program (FSAP), a joint program of the International Monetary Fund (IMF) and the World Bank (WB) 3. A [note](Financial%20Sector%20Assessment%20Program%20(FSAP).md) on FSAP and this committee ### [[Publications (Data Releases) & Research#Publications|Publications]] 1. RBI. (Sept 13, 2024). *Table 71-Financial Assistance Sanctioned and Disbursed by All Financial Institutions* in [Handbook of Statistics on Indian Economy](https://rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy) 2. RBI. (2025, October 10). *Consolidation of Regulations – Drafts for comments* \[Press Release\]. [Link](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=61407) 3. RBI. (n.d.). Master Directions-DRAFT. [Link](https://www.rbi.org.in/Scripts/BS_ViewREwiseDraftDirections.aspx) 4. RBI. (n.d.). Master Directions. [Link](https://rbi.org.in/scripts/bs_viewmasterdirections.aspx)