RBI overhauls board governance framework: shifts focus to strategy, risk oversight
The Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026 revise its corporate governance framework for banks to help boards focus more on strategy, risk management, and long-term oversight instead of routine compliance matters. Effective from 1 October 2026, the new principles-based framework reduces the number of operational issues that require board approval and allows more delegation to board committees and management. Under the revised guidelines, bank boards will be responsible for overseeing business strategy, financial soundness, governance standards, risk management, and related-party exposures, while ensuring they receive adequate information to make informed decisions. The changes aim to improve board effectiveness, strengthen governance, and reduce the compliance burden on banks.
