RBI Caps Tenure of Private Banks MD & CEO at 15 Years

27 April 2021 Current Affairs:The Reserve Bank of India (RBI) has capped the tenure of Managing Director and Chief Executive of business banks to 15 years. The identical restriction will also be relevant to whole-time directors (WTD). This means that the equal incumbent can’t preserve the post for greater than 15 years.

Highlights:
♦ The revised guidelines will be relevant to all the Private Sector Banks consisting of Small Finance Banks (SFBs) and completely owned subsidiaries of Foreign Banks. However, it will not be relevant to overseas banks operating as branches in India.
♦ The MD & CEO or WTD who is additionally a promoter/ predominant shareholder, cannot keep these posts for extra than 12 years.
♦ The upper age restriction for MD & CEO and WTDs in personal banks has been retained at 70 years.
♦ The directions shall come into effect from the date of issue of this circular, that is April 26, 2021, however, in order to allow an easy transition to the revised requirements, banks are permitted to comply with these directions latest by using October 01, 2021.
♦ RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.
 

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