What changed
RBI conducted an internal review and decided to withdraw 17 circulars effective from close of business on July 12, 2024. The withdrawn circulars cover supervisory rating of banks, risk profile templates, risk-based supervision follow-up, inspection procedures, and specimen signature requirements.
What it means for you
Banks can now discard outdated guidelines on supervisory ratings and risk profile templates, simplifying compliance. This cleanup reduces regulatory clutter and ensures banks focus on current RBI directives. Lenders should update their internal manuals and training materials accordingly.
What you must do
- Remove all references to the 17 withdrawn circulars from your compliance checklists and internal policies.
- Update your supervisory rating and risk profile documentation to align with current RBI guidelines.
- Inform relevant departments (compliance, risk, inspection) about the withdrawal to avoid using obsolete instructions.
- Review any ongoing processes that relied on these circulars and replace them with current frameworks.
Who it affects
All scheduled commercial banks, All foreign banks operating in India, Compliance and risk management teams, Internal audit and inspection departments
Which circulars have been withdrawn?
A total of 17 circulars were withdrawn, including those on supervisory rating of banks (e.g., from 1999, 2002, 2003, 2007), risk profile templates (2002-2006), risk-based supervision follow-up (2004), inspection procedures (2005), and annual financial inspection (2012).
When did the withdrawal take effect?
The withdrawal became effective from the close of business on July 12, 2024, the date of the notification.
Do we need to take any immediate action?
Yes, ensure your bank stops using these circulars for any supervisory or compliance purposes. Update internal documents and training to reflect current RBI guidelines.