Risk Management Committees (RMCs) offer specialised expertise that complements the board’s strategic vision. This study aims to investigate the impact of RMC efficacy on credit risk, with a focus on the influence of capitalisation and Covid-19 on this relationship. The inclusion of independent directors, an independent chairman, and the active engagement of RMC members has a significant and negative impact on credit risk. Furthermore, the influence of RMC on risk-taking is contingent upon the level of capitalisation, underscoring the importance of integrating risk governance with external oversight to foster stability. Findings also confirm the critical role of risk governance in mitigating banks’ credit risk in India during the COVID-19 pandemic. The rapid pace of change in the business environment, coupled with evolving regulatory demands, makes the decision-making process complex. Insights from this study are valuable for regulators and bank management in making informed policy decisions to address future uncertainties.