The Reserve Bank of India (RBI) has unveiled a draft circular proposing a principles-based framework aimed at overhauling governance for bank boards. This initiative focuses on enhancing strategy and risk oversight while allowing banks to delegate routine operational matters. RBI governor Sanjay Malhotra highlighted that this change is intended to help boards concentrate on critical policy issues rather than being bogged down by operational details. The reform comes in the wake of heightened scrutiny of governance practices, particularly following the abrupt resignation of HDFC Bank's chairman, Atanu Chakraborty, in March due to concerns over internal practices. The new framework consolidates board responsibilities into structured appendices and allows flexibility in delegating certain matters to committees. Boards will now only need to approve material amendments to policies, with the definition of materiality left to their discretion. Additionally, the new guidelines reinforce board oversight in key areas such as risk management and corporate governance standards, ensuring that the ultimate responsibility for a bank's performance rests with its board. This shift is expected to foster a sharper focus on strategic priorities and enhance the overall governance capabilities of banks in India.