(MENAFN- KNN India) New Delhi, Nov 29 (KNN) The Reserve Bank of India (RBI) has completed a sweeping regulatory consolidation by replacing a sprawling 9,446 circulars with 244 function-wise Master Directions.

This is aimed at simplifying compliance and improving clarity for banks and other regulated entities.

The restructuring, part of a six-month exercise, has repealed 5,673 outdated circulars and consolidated over 3,800 still-relevant ones, reported TOI.

Deputy Governor Shirish Chandra Murmu said the overhaul is intended to reduce compliance costs, eliminate redundancy, and ensure regulatory instructions are accessible in a single, organized format.

Under the new framework, regulated entities, including commercial banks, Non Banking Financial Companies (NBFCs), cooperative banks and others, will refer to relevant Master Directions instead of wading through decades-old circulars.

Among the updates is a fresh directive on digital banking, now requiring banks to obtain explicit consent for online banking and send transaction alerts to customers.

RBI said the consolidation does not introduce new regulations, it reorganizes existing ones. Moving forward, any amendments will be issued as updates to the Master Directions rather than fresh circulars.

The central bank expects the move will spur better compliance, governance, and ease of doing business across India's financial sector.

(KNN Bureau)

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