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Master Circular on IRAC Norms for Advances (2022)

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/15 · issued 01 Apr 2022 · ~2 min read
Quick answerRBI consolidated all prudential norms on income recognition, asset classification, and provisioning for advances up to March 31, 2022. This replaces the October 2021 master circular and includes updated guidelines on NPA management, stressed asset resolution, and restructuring. Banks must adopt this as the single reference for IRAC compliance.

What changed

This master circular supersedes the previous version dated October 1, 2021, consolidating all instructions issued up to March 31, 2022. It includes a new annex listing all circulars consolidated, ensuring banks have a single updated reference for IRAC norms. The structure remains largely unchanged, covering definitions, income recognition, asset classification, provisioning, and resolution frameworks.

What it means for you

Banks must align their internal policies and systems with the latest consolidated IRAC norms to ensure regulatory compliance. The circular reinforces objective income recognition based on recovery records and standardized asset classification criteria. Lenders should review their NPA management mechanisms and granular data reporting to meet supervisory expectations.

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

Who it affects

All commercial banks (excluding Regional Rural Banks), Credit and risk management departments, Compliance and audit teams, Loan officers handling NPA and restructuring

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this master circular introduce any new IRAC norms?

No, it consolidates existing instructions issued up to March 31, 2022, without introducing new norms. It replaces the previous master circular dated October 1, 2021.

Which banks are covered under this circular?

All commercial banks except Regional Rural Banks (RRBs) are required to comply with these prudential norms.

What is the key change from the previous master circular?

The main change is the updated consolidation date (up to March 31, 2022) and the inclusion of a new annex listing all circulars consolidated. The core norms remain the same.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Consolidated into RBI Master Circular on IRAC Norms for Advances (2023)
RBI’s words: “Please refer to the Master Circular DOR.STR.REC.4/21.04.048/2022-23 dated April 1, 2022 consolidating instructions”
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #258: DOR.STR.REC.4/21.04.048/2022-23 — "Master Circular - Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances" date”
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/15 DOR.STR.REC.4/21.04.048/2022-23 April 1, 2022 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 DOR.No.STR.REC.55/21.04.048/2021-22 dated October 1, 2021 consolidating instructions / guidelines issued to banks till September 30, 2021 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 up to March 31, 2022. A list of circulars consolidated in this Master Circular is contained in Annex 5 . 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/2022-23/15 · issued 01 Apr 2022. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12281&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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