RBI Withdraws 17 Obsolete Circulars for Simplification

The Reserve Bank of India (RBI) has undertaken an internal review to streamline and simplify the existing banking guidelines by withdrawing obsolete circulars. This move, effective from the close of business on July 12, 2024, aims to enhance regulatory efficiency and clarity for all scheduled commercial and foreign banks operating in India.

In a significant regulatory update, the RBI has decided to withdraw a series of circulars as part of its ongoing efforts to rationalize banking guidelines. This decision follows an internal review that identified redundant instructions, thereby necessitating their removal to simplify compliance requirements.

The primary objective of this withdrawal is to eliminate outdated and redundant instructions, ensuring that the regulatory framework remains relevant and easy to navigate for banks. This initiative aligns with the RBI’s commitment to maintaining a streamlined regulatory environment that facilitates efficient banking operations.

List of Withdrawn Circulars

The withdrawn circulars, detailed in the Annex, cover various aspects of bank supervision and risk management. Key circulars being withdrawn include those related to the supervisory rating of banks and the compilation and revision of risk profile templates. Notable circulars include:

1. Supervisory Rating of Banks: Circulars issued between June 1999 and January 2007, which provided guidelines on the supervisory rating of banks, have been withdrawn.

2. Risk Profile Templates: Circulars concerning the compilation, updation, and revision of risk profile templates, issued between July 2002 and June 2006, have been withdrawn.

3. Risk-Based Supervision: Circulars related to risk-based supervision and follow-up of risk management systems in banks, issued in June 2004, have been withdrawn.

4. Annual Financial Inspection (AFI): Circulars pertaining to the annual financial inspection of banks, issued in September 2012, have been withdrawn.

The Reserve Bank of India’s decision to withdraw obsolete circulars marks a significant step towards simplifying the regulatory landscape for banks. This initiative not only enhances clarity and compliance efficiency but also underscores the RBI’s commitment to maintaining a dynamic and relevant regulatory framework. By continually reviewing and updating its guidelines, the RBI ensures that the banking sector remains robust, transparent, and conducive to growth.

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Reserve Bank of India

RBI/2024-25/51
DoS.CO.PPG/SEC.4/11.01.005/2024-25

July 12, 2024

All Scheduled Commercial Banks
All Foreign Banks

Madam / Dear Sir,

Withdrawal of Circulars – Internal Review

An internal review of circulars has been carried out to remove obsolete instructions and to rationalize and simplify the existing guidelines.

2. In this context, it has been decided to withdraw the circulars listed in the Annex with effect from close of business today.

Yours faithfully,

(Tarun Singh)
Chief General Manager

Encl: As above

Annex

List of Circulars withdrawn