RBI Plans Overhaul of Regulatory Framework, Aims for Simpler Compliance

In a major move to enhance clarity and ease of doing business, the Reserve Bank of India (RBI) is all set to consolidate over 8,000 existing regulations. The decision was announced by RBI Governor Sanjay Malhotra, who emphasized that the step will help streamline compliance for banks and NBFCs and eliminate regulatory confusion.

“This is a consolidation of all existing regulations, circulars, and master directions,” Malhotra stated, adding that the aim is to come out with one master circular for banks and another for NBFCs.

RBI to Categorise Rules Under 33 Thematic Areas

To bring order to its vast rulebook, the central bank is categorising all regulations under 33 thematic subjects. This restructuring will provide a uniform compliance framework across the entire financial sector, including banks, non-banking finance companies (NBFCs), and other regulated entities.

Thematic categorisation is expected to reduce overlapping directives and enhance regulatory transparency.

Recommended Read : DLF’s The Westpark in Mumbai Sees Complete Sellout in Phase 1

New Review Cell to Keep Rules Relevant and Efficient

As part of the regulatory revamp, the RBI will also set up a dedicated review cell. This body will revisit all regulations every 5–7 years to identify and eliminate outdated or redundant rules, and ensure that regulations strike the right balance between financial stability and operational efficiency.

“We want to ensure there’s the right balance between efficiency and financial stability,” the governor highlighted.

This move comes at a time when both traditional and digital financial institutions are demanding a more cohesive and simplified regulatory environment.

The RBI’s plan to consolidate 8,000+ regulations and set up a periodic review mechanism marks a bold step toward simplifying India’s financial regulatory landscape. By creating clearer, theme-based master circulars and reviewing rules every few years, the central bank aims to cut down complexity, reduce compliance burden, and promote a more transparent financial system.

This reform is expected to benefit banks, NBFCs, and financial startups alike, while enhancing systemic stability.

Click here to explore other Gift Nifty