The Reserve Bank of India (RBI), on July 14, 2026, issued the Reserve Bank of India (Commercial Banks – Governance) Amendment Directions, 2026, Reserve Bank of India (Small Finance Banks – Governance) Amendment Directions, 2026, Reserve Bank of India (Payments Banks – Governance) Amendment Directions, 2026, and Reserve Bank of India (Local Area Banks – Governance) Amendment Directions, 2026. The Amendment Directions, which incorporate stakeholder feedback received on the draft issued on April 8, 2026, will come into effect from October 1, 2026.
The amendments replace the earlier seven broad themes for Board deliberations with a principle-based governance framework, enabling Boards to focus more effectively on strategy, risk governance, and qualitative oversight. The Directions also specify the matters that must be placed before the Boards, including those that may be delegated, through detailed appendices.
Further, certain existing Board reporting requirements have been discontinued, and the relevant RBI Directions and Circulars stand modified accordingly with effect from October 1, 2026, to align with the revised governance framework.
