Chief Executive Officers (CEOs) who have completed their 15-year tenure will now be eligible for reappointment as Managing Directors (MD) / CEOs after a period of three years, the Reserve Bank of India said in a statement on April 26.
During this three-year cool off period, they will not be associated with the bank or any of its entities, it said.
"Subject to the statutory approvals required from time to time, the post of the MD&CEO or WTD cannot be held by the same incumbent for more than 15 years. Thereafter, the individual will be eligible for re-appointment as MD&CEO or WTD in the same bank, if considered necessary and desirable by the board, after a minimum gap of three years, subject to meeting other conditions. During this three-year cooling period, the individual shall not be appointed or associated with the bank or its group entities in any capacity, either directly or indirectly," the central bank said.
WTD stands for Whole-time Director.