Reserve Bank of India: The Reserve Bank of India as we speak (October 25) requested private banks and wholly-owned subsidiaries of overseas banks to guarantee at least two Whole Time Directors (WTDs), including the MD & CEO, on their boards to facilitate succession planning.
Given the rising complexity of the banking sector, it turns into crucial to set up an efficient senior administration staff to navigate the continuing and rising challenges, the RBI stated in a round.
“Establishment of such a team may also facilitate succession planning, especially in the background of the regulatory stipulations in respect of tenure and upper age limit for Managing Director and Chief Executive Officer (MD & CEO) positions,” it stated.
The RBI requested banks to make sure the presence of at least two WTDs, including the MD & CEO, on their boards, to tackle points and challenges. The variety of WTDs ought to be determined by the board of the financial institution by bearing in mind components similar to the scale of operations, enterprise complexity, and different related elements.
“In compliance to these instructions, banks that currently do not meet the minimum requirement are advised to submit their proposals for the appointment of WTD(s) within a period of four months,” the round stated.
It additional stated banks, which don’t already have the enabling provisions relating to the appointment of WTDs of their Articles of Association, could first search needed approvals from the RBI, expeditiously.
(With companies inputs)
ALSO READ: RBI not contemplating re-introduction of Rs 1,000 notes: Sources
ALSO READ: RBI Assistant examination date 2023 revised, examine new dates, paper sample
