MUMBAI: In a bid to ensure more effective utilization of time by bank boards, the RBI on Wednesday issued revised guidelines for scheduling board meeting agendas. The central bank’s objective is to enable bank boards to focus more productively on strategy and risk governance.
According to the revised guidelines, which will come into effect from October 1, 2026, boards must clearly specify which matters are placed before them for approval. They are also required to periodically review their delegated powers.
Under the new framework, the board will be responsible for overseeing risk management, policy and strategy, monitoring loans to or investments in group entities, and ensuring overall corporate governance.
“The primary responsibility for setting the agenda for meetings will lie with the Chairperson of the Board,” the banking regulator stated in its revised guidelines.
The RBI emphasized that the ultimate responsibility for a bank’s business strategy, financial health, governance framework, key personnel decisions, risk management, and compliance rests solely with the board.
To perform their roles effectively, boards must ensure they receive adequate information from the management. The guidelines mandate that the board clearly specify the nature and frequency of the information it requires from the management.
“If required, the board can also seek external reports,” the RBI proposed.
While the board can delegate specific matters to board committees or management committees, it must clearly define the reporting requirements. The board has been asked to explicitly state which matters require its direct approval and to dedicate sufficient time to strategy and risk governance.
“The Board of Directors shall periodically review the matters to be placed before it, as well as those delegated to board committees or management committees,” the RBI statement added. This review will evaluate whether the agenda was circulated on time, if the information provided was adequate, and whether sufficient time was allocated to discuss critical issues.
Additionally, the board must define the nature and frequency of the information expected from the management. It must also regularly review whether delegated matters, the quality of the agenda, the timeline for circulating agenda papers, and the time allocated for key issues remain appropriate.
The corporate governance provisions applicable to public sector banks have also been extended to private sector banks, subject to necessary modifications.
