The Reserve Bank of India (RBI) on April 08, 2026, issued the Draft “Reserve Bank of India (Governance) Amendment Directions, 2026.
The following has been stated namely: -
• RBI has reviewed and streamlined the list of items that must be placed before bank boards, aiming to improve efficiency, focus on strategy, and risk governance.
• The earlier framework based on seven broad themes has now been replaced with principle-based guidance, giving banks more flexibility in board governance.
• RBI has released draft amendments for the following regulations:
o RBI (Commercial Banks – Governance) Directions, 2026
o RBI (Small Finance Banks – Governance) Directions, 2026
o RBI (Payments Banks – Governance) Directions, 2026
o RBI (Local Area Banks – Governance) Directions, 2026
• The amendments aim to enhance board effectiveness, reduce compliance burden, and enable more meaningful discussions on business strategy and risk oversight.
• RBI has invited comments from stakeholders and the public on these draft directions, with the deadline set for May 07, 2026, via its website or email.
[Press Release: 2026-2027/47]
