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RBI Updates IRAC Norms Master Circular for FY25

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/12 · issued 02 Apr 2024 · ~2 min read
Quick answerRBI issued a revised Master Circular on prudential norms for income recognition, asset classification, and provisioning (IRAC) as of April 2, 2024. It consolidates all instructions issued up to March 31, 2024, without introducing new guidelines. Banks must use this as the single reference for IRAC compliance.

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.

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 RRBs), Risk management and credit departments, Compliance and audit teams, Loan officers handling asset classification and provisioning

❓ 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, 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.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Consolidated into RBI Updates IRAC Norms Master Circular for 2025-26
RBI’s words: “Please refer to the Master Circular DOR.STR.REC.8/21.04.048/2024-25 dated April 2, 2024 consolidating instructions”
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #125: DOR.STR.REC.8/21.04.048/2024-25 — "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/2024-25/12 DOR.STR.REC.8/21.04.048/2024-25 April 02, 2024 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.STR.REC.3/21.04.048/2023-24 dated April 1, 2023 consolidating instructions / guidelines issued to banks till March 31, 2023 on matters relating to prudential norms on income recognition, asset classification and provisioning pertaining to advances. 2. Attached is the revised Master Circular , updated to reflect all instructions issued upto March 31, 2024 on the above matter, as listed in Annex 5 . It may be noted that this Master Circular only consolidates all instructions on the above matter issued up to March 31, 2024 and does not contain any new instructions/guidelines. Yours faithfully (Vaibhav Chaturvedi) Chief General Manager Encl.: As above MASTER CIRCULAR - PRUDENTIAL NORMS ON INCOME RECOGNITION, ASSET CLASSIFICATION AND PROVISIONING PERTAINING TO ADVANCES Table of Contents
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/12 · issued 02 Apr 2024. 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=12657&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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