What changed
The RBI replaced the previous Master Circular dated April 1, 2023, with a revised version updated to include all instructions issued up to March 31, 2024. The circular explicitly states it only consolidates existing instructions and does not contain any new guidelines. Annex 5 lists the circulars that have been consolidated.
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 compliance and reporting across commercial banks (excluding RRBs). Lenders should review the updated annexes and ensure their internal policies align with the latest consolidated instructions.
What you must do
- Replace the old Master Circular (dated April 1, 2023) with this revised version for all IRAC-related compliance and reporting.
- Review Annex 5 to identify any circulars that have been newly consolidated and ensure your bank's practices reflect them.
- Update internal training materials and policy documents to reference this Master Circular as the single source for IRAC norms.
- Ensure that no new instructions are being implemented inadvertently; this is purely a consolidation exercise.
Who it affects
All Commercial Banks (excluding RRBs), Risk management and credit departments, Compliance and audit teams, Loan officers handling asset classification and provisioning
Does this Master Circular introduce any new IRAC norms?
No, the circular explicitly states it only consolidates all instructions issued up to March 31, 2024, and does not contain any new guidelines.
Which banks are covered by this circular?
All Commercial Banks excluding Regional Rural Banks (RRBs) are required to follow this Master Circular.
Where can I find the list of circulars that have been consolidated?
Annex 5 of the Master Circular provides the list of circulars that have been consolidated into this document.