CEO of banks, MD for 15 years now
RBI issues new guidelines
New Delhi: The Reserve Bank of India (RBI) has issued new guidelines for the posts of CEO, Chief Financial Officer and Managing Director of private banks, microfinance banks and subsidiaries of foreign banks. A person in office cannot hold office for more than 15 years.
The limit is for private banks, microfinance banks and subsidiaries owned by foreign banks. However, these guidelines will not apply to branches of foreign banks in India. According to RBI guidelines, no person can hold the post of managing director, chief financial officer or full-time director in any bank for more than 15 years. In addition, the age limit for managing directors and chief financial officers in private banks will be 70 years. Boards of private banks, however, will have the freedom to fix the retirement age for the posts of Managing Director, Chief Financial Officer and Full-time Director. Even if the MD, CEO or full time director is a promoter or a major shareholder, the person concerned cannot hold the relevant post for more than 12 years. Meanwhile, the person in charge may be allowed to remain in office for up to 15 years in case of emergency. The RBI has issued guidelines for CEO and managing director positions of private banks, microfinance banks as well as subsidiaries of foreign banks. Therefore, the persons in the respective posts will not be allowed to remain in the post for more than 15 years.
Tags: New Delhi, Reserve Bank of india