Mumbai, April 8 -- India's banking regulator on Wednesday proposed rationalizing what bank boards must review, shifting their focus squarely towards strategy and risk oversight while allowing greater delegation of routine matters, in a sweeping governance overhaul.

The Reserve Bank of India (RBI), in a draft circular, suggested consolidating and simplifying board-level responsibilities, removing multiple existing provisions and replacing them with a principles-based framework that clearly defines what must go to the board and what can be delegated.

RBI governor Sanjay Malhotra said the step is aimed at helping boards utilize their time effectively and to facilitate a more focused and qualitative engagement on strategy and risk governanc...