Reserve Bank of India issues Governance Amendment Directions for bank boards (effective 1 Oct 2026)
Bank boards must place only matters listed in the Amendment Directions' appendices on agendas from 1 Oct 2026; matters listed in Annex II are no longer required to be presented
Change
On 14 July 2026, the Reserve Bank of India (RBI) issued Governance Amendment Directions for commercial banks, small finance banks, payments banks and local area banks, effective 1 October 2026, replacing the previous seven broad board-agenda themes with principle-based guidance and discontinuing the requirement to place certain matters (Annex II) before bank boards.
Why it matters
With effect from 1 October 2026, extant RBI Directions and Circulars referenced in the appendices are modified and the regulatory requirement to place discontinued (Annex II) matters before boards ceases. The reform replaces the seven prescriptive board-agenda themes with principle-based guidance intended to focus board time on strategy and risk governance, and specifies in appendices which matters must be placed before boards and which may be delegated. Banks must realign delegated authorities and board papers to the revised appendices so that only prescribed matters appear on board agendas.
Implications
- — Boards and board secretaries at commercial banks, small finance banks, payments banks and local area banks must remove Annex II matters from board agendas and delegated-authority frameworks from 1 October 2026 — continuing to present discontinued items, or omitting still-required appendix matters, leaves board governance out of step with the amended RBI Directions.
- — Bank governance, compliance and company-secretarial teams must reconcile standing board-agenda templates, delegation registers and internal governance policies against the revised appendices before 1 October 2026, because the extant Directions and Circulars referenced in the appendices stand modified from that date.
Who is affected
- — Boards of commercial banks, small finance banks, payments banks and local area banks
- — Bank governance, compliance and company-secretarial teams at affected banks
What to watch
- — Effective: 1 October 2026 — Amendment Directions apply and Annex II matters cease to be required to be placed before boards.