The Reserve Bank of India (RBI) has issued instructions on governance for banks, including private banks, small finance banks, Wholly Owned Subsidiaries of Foreign Banks.
Accordingly, the post of Managing Director (MD) and Chief Executive Officer (CEO) or Whole Time Director (WTD) cannot be held by the same individual for more than 15 years.
Banks have time till 1 October to implement this policy, according to RBI's circular.
The upper age limit for MD & CEO and WTDs in private banks would continue to be 70 years.
This is not applicable to foreign banks operating as branches in India.
While examining the matter of re-appointment of MD and CEOs within the 12-15 years period, the level of progress, adherence to RBI’s promoter shareholding norms will be factored in by RBI during re-appointments.
