What changed
...superseded. The earlier 2001 circular on this subject is now superseded.
What it means for you
Private banks now have a standardized minimum set of review items for governance bodies, ensuring consistency across the sector. Boards retain discretion to add more reviews as needed. Compliance requires updating internal schedules and committee agendas by the effective date.
What you must do
- Adopt the revised calendar of reviews for Board, Management Committee, and Audit Committee from August 1, 2005.
- If no Management Committee exists, ensure Annexure II reviews are placed before the Board.
- Update internal governance documents to reflect the new minimum review requirements.
Who it affects
Private sector banks, Board of Directors, Management Committee, Audit Committee
What if our bank doesn't have a Management Committee?
In that case, the reviews listed in Annexure II of the circular must be placed directly before the Board of Directors.
Does this circular replace any previous instructions?
Yes, it supersedes the earlier circular DBOD.No.PSBS.BC. 43/16.13.100/2001-01 dated November 1, 2000.
Can our Board add more review items beyond this calendar?
Absolutely. The calendar outlines only the critical minimum; Boards have full discretion to prescribe additional reviews as needed.