RBI
added that the number of Whole Time Directors shall be decided by the Board of
the bank by taking into account factors such as the size of operations,
business complexity, and other relevant aspects.
The RBI said
in a circular, "Given the growing complexity of the banking sector, it
becomes imperative to establish an effective senior management team in the
banks to navigate ongoing and emerging challenges. 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."
RBI added that the
number of Whole Time Directors shall be decided by the Board of the bank by
taking into account factors such as the size of operations, business
complexity, and other relevant aspects.
"In
compliance to these instructions, banks that currently do not meet the minimum
requirement as above are advised to submit their proposals for the appointment
of WTD(s) under Section 35B(1)(b) of the Banking Regulation Act, 1949, within a
period of four months from the date of issuance of this circular," said
RBI.
The Central
Bank further added that those banks which do not already have the enabling
provisions regarding appointment of WTDs in their Articles of Association may
first seek necessary approvals under Section 35B(1)(a) of the Act ibid,
expeditiously, so as to be in a position to comply with the requirements under
these instructions.
"While
ensuring compliance to the above instructions, careful consideration shall also
be given to meet the requirements under other applicable statutory/regulatory
provisions," RBI said.
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Credit: ZEE NEWS
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