GK and monthly revision

RBI tightens governance framework, redefines bank board responsibilities

The Reserve Bank of India (RBI) has revised the governance framework for bank boards, effective from October 1, 2023. This change aims to enhance corporate governance by allowing bank directors to focus more on strategic and risk oversight rather than operational matters. Specialized committees will now handle routine approvals, which is expected to improve efficiency and enable boards to dedicate more time to long-term strategic issues. This revision follows earlier draft proposals aimed at strengthening governance in the banking sector.