RBI Deputy Governor SC Murmu told the media that over the past five months, the RBI has undertaken a massive exercise to strengthen the regulatory framework. In the process, 9,446 circulars (including master circulars and directives) have been repealed.
Cancels Circulars: The Reserve Bank of India (RBI) has made several important banking-related announcements. RBI Deputy Governor SC Murmu told the media that over the past five months, the RBI has undertaken a comprehensive initiative to strengthen the regulatory framework. In the process, 9,446 circulars (including master circulars and directives) have been repealed. This move by the RBI is aimed at reducing the compliance burden on banks, financial companies, and other regulated entities that has been mounting over the years.
32 Master Circulars for Commercial Banks
32 Master Directions have been issued for commercial banks, including bank licensing guidelines. Stakeholders will now be required to follow only these Master Directions. This means that the old circulars will no longer be needed. The RBI Deputy Governor stated that the guidelines for different entities related to bank licensing have been integrated and will be updated if any changes occur in the future.
The new Master Directions cover 11 types of financial institutions—commercial banks, small finance banks, payment banks, RRBs, cooperative banks, NBFCs, and credit information companies. These have been prepared separately to make it easier for each institution to understand which rules apply to it.
Why was this change necessary?
-The old circulars had become too numerous and complex.
-Many directions had become irrelevant over time.
-It was unclear which rules applied to different types of entities.
-Compliance burdens and costs were increasing.
The post Cancels Circulars: RBI makes major banking announcement, cancels over 9,000 circulars first appeared on informalnewz.
from informalnewz https://ift.tt/MEVYgow
0 Comments