What changed
RBI conducted an internal review to identify and remove obsolete or superfluous instructions. As a result, eight circulars related to compliance officers, internal audit, and risk-based audit have been withdrawn with immediate effect.
What it means for you
Banks no longer need to follow these specific circulars, reducing regulatory clutter. This cleanup helps streamline compliance processes and allows banks to focus on current, relevant guidelines. It signals RBI's ongoing effort to rationalize regulations.
What you must do
- Remove the eight withdrawn circulars from your compliance monitoring systems.
- Update internal audit and compliance checklists to reflect the withdrawal.
- Inform relevant teams (compliance, audit, risk) about the change.
- Monitor for any future circulars that may replace or update these instructions.
Who it affects
Scheduled Commercial Banks, Primary (Urban) Cooperative Banks, Compliance officers, Internal audit teams, Risk management departments
Which circulars have been withdrawn?
Eight circulars from 1995 to 2006 covering compliance officers, internal audit, risk-based audit, and audit committees. Full list is in the RBI notification annex.
Do I need to take any action immediately?
Yes, update your compliance and audit checklists to remove these circulars. No further action is required unless RBI issues replacement guidelines.
Will this affect current audit practices?
No, the withdrawn circulars were outdated. Current practices should already align with more recent RBI master directions and circulars.