The Reserve Bank of India (RBI) has conducted an internal review and decided to withdraw several outdated and redundant circulars, effective immediately. These circulars, originally issued between 1987 and 2011, pertain to various banking practices, such as credit facilities to minority communities, opening of “No-Frills” accounts for students, and guidelines on microcredit. The RBI’s rationale for withdrawing these circulars is that the instructions within them have either been updated or replaced by more recent guidelines. For instance, the circulars on credit facilities to minority communities from 1987 and 1988 have been replaced by the Master Circular on Credit Facilities to Minority Communities issued in April 2023. Similarly, the “No-Frills” accounts concept has been discontinued in favor of Basic Savings Bank Deposit Accounts (BSBDA) as the standard banking service for all customers. The instructions on microcredit have been integrated into the updated Master Circulars on Self-Help Group (SHG) Bank Linkage, and Non-Banking Financial Company (NBFC) regulations, reflecting the RBI’s effort to streamline and modernize its regulatory framework.
Reserve Bank of India
RBI/2024-25/73
CO.FIDD.PCD.BC.No.9/04-04-003/2024-25 Dated: September 02, 2024
All Scheduled Commercial Banks
Madam /Dear Sir,
Review of Extant Instructions – Withdrawal of Circulars
An internal review was carried out to identify and withdraw obsolete/ outdated/ superfluous instructions. Based on the same, the circulars listed in the Annex stand withdrawn with immediate effect in view of subsequent updated instructions issued on the subject matters.
Yours faithfully,
(Nisha Nambiar)
Chief General Manager-in-Charge
Annex
List of circulars withdrawn
| Sr. No. | Circular No. | Date | Subject | Rationale for withdrawal |
| 1. | RPCD.No.SP.BC.14/PS.160-87/88 | July 31, 1987 | Credit facilities to Minority Communities | The reporting formats prescribed in these circulars had been modified and the periodicity has been changed. The updated instructions are reflected in the Master Circular on Credit Facilities to Minority Communities dated April 01, 2023. |
| 2. | RPCD.No.SP.BC.45/PS.160-87/88 | October 16, 1987 | Credit facilities to Minority Communities | |
| 3. | RPCD.No.SP.BC.46/PS.160/88-89 | November 17, 1988 | Credit facilities to Minority Communities | |
| 4. | RPCD.CO.FID.BC.No.2433/ 12.01.012/2010-11 | August 26, 2010 | Opening of No-Frills accounts by students for availing various Government Scholarships | The nomenclature “No frills account” has been discontinued, and the extant provisions of Basic Savings Bank Deposit Account (BSBDA) as normal banking service for all customers is in vogue. |
| 5. | RPCD.FID.BC.No.53/12.01.001 /2010-11 | February 14, 2011 | Master Circular on Micro Credit | The guidelines contained in the circular have been subsumed under Master Circular on SHG- Bank linkage dated April 1, 2024, Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Master Directions – Priority Sector Lending (PSL) – Targets and Classification |
