Master Circular: Prudential Norms on IRAC for Advances
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2021-2022/104 · issued 01 Oct 2021 · ~1 min read
Quick answerRBI consolidated all existing prudential norms on income recognition, asset classification, and provisioning (IRAC) for advances into a single master circular, effective October 1, 2021. This replaces the July 2015 master circular and includes all updates issued up to this date.
What changed
RBI issued a new master circular (DOR.No.STR.REC.55/21.04.048/2021-22) that consolidates all previous instructions on IRAC norms for advances, superseding the July 1, 2015 master circular. The circular lists all consolidated circulars in Annex 6 and covers definitions, income recognition, asset classification, provisioning norms, and stressed asset resolution frameworks.
What it means for you
Banks now have a single, updated reference document for all IRAC norms, reducing the need to track multiple circulars. This consolidation ensures uniformity in asset classification and provisioning practices, which is critical for accurate NPA reporting and capital adequacy. Lenders must align their internal policies with this master circular to avoid regulatory gaps.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and update your bank's IRAC policies to align with this master circular.
Ensure all staff involved in credit and risk management are trained on the consolidated norms.
Verify that your NPA identification and provisioning systems reflect the latest definitions and thresholds.
Maintain a copy of this circular and its annexes for audit and regulatory reference.
Who it affects
All commercial banks (excluding Regional Rural Banks), Credit risk and NPA management teams, Internal audit and compliance departments, Loan officers and relationship managers
RBI’s words: “Please refer to the Master Circular DOR.No.STR.REC.55/21.04.048/2021-22 dated October 1, 2021 consolidating instructions”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #282: DOR.No.STR.REC.55/21.04.048/2021-22 — "Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances" ”
📜 Read the original circular — full text as issued by RBI
RBI/2021-2022/104
DOR.No.STR.REC.55/21.04.048/2021-22
October 1, 2021
All Commercial Banks (excluding RRBs)
Madam/Dear Sir
Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances
Please refer to the Master Circular No. DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015 consolidating instructions / guidelines issued to banks till June 30, 2015 on matters relating to prudential norms on income recognition, asset classification and provisioning pertaining to advances.
2. This Master Circular consolidates instructions on the above matters issued as on date. A list of circulars consolidated in this Master Circular is contained in the Annex 6 .
Yours faithfully
(Manoranjan Mishra)
Chief General Manager
Encl.: As above
MASTER CIRCULAR - PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET
CLASSIFICATION AND PROVISIONING PERTAINING TO ADVANCES
Table of Contents
Part A
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-2022/104 · issued 01 Oct 2021. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12171&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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