The Reserve Bank of India has issued draft amendments to its governance directions for banks, proposing to rationalise RBI-mandated items that must be placed before bank boards for approval, review or information and to replace the existing theme-based framework for board engagement with principle-based guidance. The draft changes follow a comprehensive review of instructions aimed at helping boards use their time more effectively and focus on strategy and risk governance. The consultation covers governance directions for commercial banks, small finance banks, payments banks and local area banks. Comments on the draft Amendment Directions are open to regulated entities and other stakeholders until May 07, 2026 via the RBI’s ‘Connect 2 Regulate’ portal or by email (with the specified subject line).
Reserve Bank of India 2026-04-08
Reserve Bank of India consults on draft governance amendments to streamline matters placed before bank boards
The Reserve Bank of India has issued draft amendments to its governance directions for banks, proposing to rationalise items requiring board consideration and to replace the existing theme-based framework for board engagement with principle-based guidance. The proposals follow a comprehensive review intended to help boards focus more effectively on strategy and risk governance and apply to commercial banks, small finance banks, payments banks and local area banks.