RBI Update - Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026

The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026, effective from 1 October 2026, with the objective of rationalising Board-level agenda requirements and enabling bank Boards to devote greater attention to strategic oversight and risk governance. The amendments reposition the Board’s oversight responsibilities by introducing Paragraph 11A, requiring oversight of the bank’s risk management framework, exposures to related entities, and compliance with corporate governance standards, while deleting certain existing provisions relating to Board practices (Paragraphs 14, 16, 17, 18 and 19). A new Section B1 (“Matters to be placed before the Board”) has been inserted, prescribing through Appendices I, IIA and IIB the matters and policies that must be placed before the Board for approval, review or information, and those that may be delegated to Board or Management Committees. The amendments further establish governance principles emphasizing the Board’s ultimate responsibility for strategy, financial soundness, governance and risk management, the Chairperson’s role in agenda setting, the Board’s authority to determine information requirements from management, and periodic review of delegated matters. Corresponding provisions applicable to Public Sector Banks have also been extended, mutatis mutandis, to Private Sector Banks through amendments to Paragraphs 52 and 57 of the Directions.