Updates

​The Reserve Bank of India’s Master Directions consolidate and streamline regulatory instructions across various financial sectors, ensuring clarity and consistency. These directives are periodically updated to reflect policy changes and are supplemented with FAQs for ease of understanding.

The Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024 (updated as on April 23, 2025) provides a comprehensive regulatory framework for Asset Reconstruction Companies (ARCs) to ensure fairness, transparency, and accountability in their operations. It outlines guidelines on asset acquisition, management takeover, provisioning norms, and governance standards to strengthen the resolution of stressed assets and protect stakeholder interests .

These directions aim to enhance the efficiency and effectiveness of ARCs in the financial system by promoting prudent practices and aligning their operations with the broader objectives of financial stability and creditor protection.

The Reserve Bank of India’s Master Direction dated April 22, 2025, consolidates guidelines for compounding contraventions under the Foreign Exchange Management Act (FEMA), 1999, in line with the updated Foreign Exchange (Compounding Proceedings) Rules, 2024. It outlines procedures for applications, specifies cases eligible for compounding, and emphasizes compliance responsibilities for Authorised Dealer banks.

​The Reserve Bank of India’s Master Direction on Penal Provisions in Reporting of Transactions/Balances at Currency Chests, effective from April 1, 2025, mandates that all currency chest transactions be reported via the CyM-CC portal by 7 PM on the same day. Delays or inaccuracies in reporting will attract penal interest, calculated on a T+0 basis, to uphold the objectives of the Clean Note Policy and ensure accurate currency management.

I’m unable to access the specific content of the RBI Master Direction at the provided link. However, RBI Master Directions are comprehensive guidelines issued by the Reserve Bank of India to consolidate and update existing instructions on various regulatory topics. To obtain an accurate summary, please refer directly to the official RBI website or consult the document for detailed information.

The Reserve Bank of India (RBI) Master Directions on Know Your Customer (KYC) provide comprehensive guidelines for regulated entities to implement customer identification procedures, ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) standards.​

These directions outline the responsibilities of banks and financial institutions in verifying the identity of their customers, maintaining records, and reporting suspicious transactions, thereby promoting transparency and integrity in the financial system.

The Reserve Bank of India’s Master Direction ID 12818 outlines comprehensive guidelines for financial institutions regarding investments in non-government debt securities. It emphasizes prudential norms, disclosure requirements, and risk management practices to ensure transparency and safeguard investor interests in the debt market.

The “Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, 2025” outlines the regulatory framework governing interest rates offered by banks on various deposit schemes. It aims to ensure transparency, customer protection, and consistency in deposit interest practices across the banking sector.

The Reserve Bank of India’s Master Direction on Prudential Norms on Capital Adequacy for Regional Rural Banks (RRBs), effective from April 1, 2025, mandates RRBs to maintain a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9%, detailing the composition and limits of Tier 1 and Tier 2 capital. It also outlines the methodology for computing risk-weighted assets and stipulates annual reporting requirements to ensure financial stability and compliance.

The “Master Directions – Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2025” outline the updated guidelines for banks to ensure adequate credit flow to priority sectors like agriculture, MSMEs, and weaker sections. These directions define lending targets and sub-targets to promote inclusive economic development.

The Master Direction – Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (updated as on February 27, 2025) provides a comprehensive regulatory framework for NBFCs accepting public deposits. These directions outline eligibility criteria, prudential norms, and reporting requirements to ensure financial stability and protect depositor interests

The Master Direction – Reserve Bank of India (Prudential Regulations on Basel III Capital Framework, Exposure Norms, Significant Investments, Classification, Valuation and Operation of Investment Portfolio Norms and Resource Raising Norms for All India Financial Institutions) Directions, 2023 (updated as on February 17, 2025) provides a comprehensive regulatory framework for All India Financial Institutions (AIFIs), aligning them with global Basel III standards. This update introduces key amendments, including the exclusion of certain long-term investments from the Held to Maturity (HTM) category ceiling, thereby enhancing the flexibility and efficiency of AIFIs in managing their investment portfolios .