What changed
RBI withdrew eight circulars listed in the annex, effective from close of business on May 2, 2022. The withdrawn circulars relate to Ready Forward contracts (March 2000, March 2002, March 2003, July 2010), Primary Dealers' access to call/notice money (November 2003), and issuance of Non-Convertible Debentures (June 2010, December 2010, December 2010).
What it means for you
Banks and market participants no longer need to comply with these specific older circulars, reducing regulatory clutter. This simplifies compliance for transactions like Ready Forward contracts and NCD issuance, as the underlying rules are now covered by more recent master directions.
What you must do
- Verify that your internal policies no longer reference the eight withdrawn circulars listed in the annex.
- Update compliance checklists and training materials to remove these circulars.
- Ensure staff handling money market and debt instruments are aware of the current applicable regulations.
- Monitor for any further RRA 2.0 circular withdrawals that may affect your operations.
Who it affects
All eligible market participants, Banks dealing in Ready Forward contracts, Primary Dealers, Entities issuing Non-Convertible Debentures
Which specific circulars were withdrawn?
Eight circulars were withdrawn, including those on Ready Forward contracts (March 2000, March 2002, March 2003, July 2010), Primary Dealers' access to call/notice money (November 2003), and issuance of Non-Convertible Debentures (June 2010, December 2010, December 2010).
Why did RBI withdraw these circulars?
This is part of the Regulations Review Authority (RRA 2.0) initiative to simplify and streamline regulations by removing outdated or redundant circulars.
Do I need to take any immediate action?
Yes, update your internal compliance references to remove these circulars and ensure your teams follow current regulations for Ready Forward contracts and NCD issuance.