{"id":15898,"date":"2020-06-12T18:02:34","date_gmt":"2020-06-12T12:32:34","guid":{"rendered":"https:\/\/factly.forumias.com\/?p=15898"},"modified":"2020-06-12T18:02:34","modified_gmt":"2020-06-12T12:32:34","slug":"reserve-bank-proposes-to-shore-up-bank-boards","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reserve-bank-proposes-to-shore-up-bank-boards\/","title":{"rendered":"Reserve Bank proposes to shore up bank boards"},"content":{"rendered":"\n<p><strong>News:<\/strong> The Reserve Bank of India(RBI) has issued a discussion paper on &#8216;Governance in Commercial Banks&#8217;.The discussion paper aims to create a clearly definable separation between the board and the management of a bank.<\/p>\n\n\n\n<p><strong>Facts:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Guidelines Coverage: <\/strong>The<strong> <\/strong>guidelines are applicable to private, foreign and public sector banks.<\/li><li>It will come into effect within six months after being placed on the RBI\u2019s website or April 1,2021 whichever is later.<\/li><\/ul>\n\n\n\n<p><strong>Key Guidelines issued:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Board Members <\/strong>should not be a member of any other bank\u2019s board or the RBI and should not be either a Member of Parliament or State Legislature or Municipality or other local bodies.<\/li><li><strong>Board of directors<\/strong> of a bank should not be less than six and not more than 15 with a majority being independent directors.The Chairman of the Board should be an independent director.<\/li><li><strong>Board<\/strong> shall meet at least six times a year and at least once every 60 days.<\/li><li><strong>Approval of RBI: <\/strong>Appointment, re\u00adappointment and termination of whole-time directors (WTDs) and chief executive officers(CEO) should be with the previous approval of RBI.<\/li><li><strong>Age Limit: <\/strong>The upper age limit for CEO and WTDs of banks is suggested at 70 years which is a norm for private banks at present.<\/li><li><strong>Reappointment: <\/strong>The person can be re-appointed only after three years, the period in which there should be no association with the bank in any capacity.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Reserve Bank of India(RBI) has issued a discussion paper on &#8216;Governance in Commercial Banks&#8217;.The discussion paper aims to create a clearly definable separation between the board and the management of a bank. Facts: Guidelines Coverage: The guidelines are applicable to private, foreign and public sector banks. It will come into effect within six&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/reserve-bank-proposes-to-shore-up-bank-boards\/\">Continue reading <span class=\"screen-reader-text\">Reserve Bank proposes to shore up bank boards<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[4124,394],"class_list":["post-15898","post","type-post","status-publish","format-standard","hentry","category-economy","tag-governance-in-commercial-banks","tag-rbi","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704726748},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/15898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=15898"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/15898\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=15898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=15898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=15898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}