Reserve Bank of India (Payments Banks – Governance) Amendment Directions, 2026
RBI notification RBI/2026-27/179 · 14 Jul 2026
RBI notification RBI/2026-27/179 · 14 Jul 2026
Summary
Check the official recordThe Reserve Bank of India amends governance directions for payments banks to improve board efficiency. The amendments rationalize matters that banks must present to their boards. The board exercises oversight on risk management systems, related entity exposures, and corporate governance standards. The directions introduce new requirements for policies and matters requiring board approval, review, or information. Banks follow specific appendices for delegation of policy approvals. The board retains responsibility for business strategy, financial soundness, and risk management. The board chairperson sets the meeting agenda. The board receives sufficient information from management to perform its duties. The board periodically reviews the matters it considers and the matters it delegates to committees. These changes take effect on October 01, 2026.
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Key dates
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RBI/2026-27/179 DOR.HGG.GOV.152/29.67.001/2026-27 July 14, 2026
Reserve Bank of India (Payments Banks – Governance) Amendment Directions, 2026
Please refer to the Reserve Bank of India (Payments Banks - Governance) Directions, 2025 (hereinafter referred to as ‘Directions’).
In an endeavour to enable bank Boards to utilize their time effectively and to facilitate a more focused and qualitative engagement on strategy and risk governance, it has been decided to undertake a review to rationalize the extant RBI directions/circulars on the matters required to be placed before the Board. Accordingly, in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank of India, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
The Amendment Directions modify the Directions as under:
3(1) Paragraph 23 of Chapter V shall be deleted and reinserted (with slight modification) after paragraph 16 as under:
“16A. The Board shall exercise oversight on the following:
- risk management system, policy and strategy followed by the bank;
- exposures to related entities of the bank;
- conformity with corporate governance standards viz. in composition of various committees, their role and functions, periodicity of the meetings and compliance with coverage and review functions etc.”
3(2) Paragraph 17 of Chapter IV and paragraphs 22, 24, 25, 26 and 27 of Chapter V shall be deleted.
3(3) Title of Chapter-V ‘Calendar of Reviews and Board Meeting Procedures’ stands amended to ‘Matters to be placed before the Board’.
3(4) After paragraph 27, the following new paragraphs shall be inserted in chapter V as under:
“27A. Notwithstanding anything contained in extant RBI circulars or directions, the requirement for matters to be placed before the Board shall be as under:
- Policies that are required to be placed before the Board for approval and those in respect of which such approval can be delegated, shall be as specified in Appendix I. Review of polices which are specified to be approved by Board may be delegated to Board Committees, with the Board approving only material amendments thereto.
- Matters, other than policies, that are required to be placed before the Board for approval/review/information, shall be as specified in Appendix II A.
- Matters, other than policies, that may be delegated at the discretion of the Board, shall be as specified in Appendix II B.
27B. In addition to above, the matters to be placed before the Board may be determined based on the following key principles:
- The Board has ultimate responsibility for the bank’s business strategy and financial soundness, key personnel decisions, internal organisation and governance structure and practices, and risk management and compliance obligations. It may, however, delegate certain matters to the Board Committees / Management Committees, along with reporting requirements as may be necessary.
- The Board shall clearly articulate the matters reserved for its approval or to be brought to its notice for information or reporting. The role and responsibilities of the Board prescribed under various statutes or regulations, shall be taken into account in determining such matters. However, the Board shall ensure that sufficient time is dedicated to strategy and risk governance.
- The Chairperson of the Board shall have the primary responsibility for setting the agenda of the meeting.
- The Board shall ensure that it receives sufficient information from the management to discharge its role effectively. It shall clearly specify the nature and frequency of information required from the management. The Board may seek external reports, if needed.
- The Board shall periodically review the matters to be placed before it as well as the matters delegated to the Board Committees / Management Committees. The review shall also include the timeliness of circulation of agenda items, adequacy of information captured in the agenda, time allotted for important matters, etc.”
(Scenta Joy) Chief General Manager