meta_id 3326687

On July 14, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026, amending the Commercial Banks – Governance Directions, 2025. The amendment rationalizes existing RBI directions and circulars concerning matters requiring Board approval, enabling bank Boards to allocate time more effectively toward strategy and risk governance. The amendment introduces significant structural changes to Board oversight responsibilities. It consolidates and relocates Board oversight provisions to establish clearer governance frameworks, specifically addressing risk management systems, related-party exposures, and corporate governance standards compliance. The amendment establishes a new section outlining matters requiring Board placement, distinguishing between policies requiring Board approval, those subject to delegated approval, and matters requiring Board review or information. Key principles now guide Board determination of reserved matters, emphasizing the Board's ultimate responsibility for business strategy, financial soundness, key personnel decisions, internal organization, governance structure, and risk management obligations. The amendment clarifies that while certain matters may be delegated to Board Committees or Management Committees, the Board must ensure sufficient time dedication to strategy and risk governance. The Chairperson bears primary responsibility for setting meeting agendas, and the Board must receive adequate management information to discharge its role effectively. Additionally, the Board shall periodically review delegated matters and the timeliness of agenda circulation. The amendment applies to both Public Sector Banks (PSBs) and Private Sector Banks (PVBs) through corresponding modifications to their respective governance provisions. The Amendment Directions become effective on October 1, 2026, with all related RBI directions and circulars modified accordingly from that date.