Reserve Bank of India (Small Finance Banks – Governance) Amendment Directions, 2026

RBI/2026-27/178
DOR.HGG.GOV.151/29.67.001/2026-27

July 14, 2026

Reserve Bank of India (Small Finance Banks – Governance) Amendment Directions, 2026

The Reserve Bank of India has amended the Small Finance Banks–Governance Directions, 2025, to help bank Boards focus more effectively on strategy, financial soundness, risk governance and compliance. Boards will continue to oversee risk management frameworks, exposures to related entities and adherence to corporate governance standards.

The revised framework classifies policies and other matters that require Board approval, review or information, as well as matters that may be delegated to Board or Management Committees. While policy reviews may be delegated to Board Committees, material amendments must receive Board approval. Boards must also clearly define reserved and delegated matters, obtain adequate management information, periodically assess agenda quality and ensure sufficient time for critical strategic and risk-related discussions.

The Amendment Directions will take effect from October 1, 2026. CA Sansaar

(Scenta Joy)
Chief General Manager

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