Moneycontrol
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Tune in on 17th July for the Small Business Virtual Summit with Cisco. Register now!
Last Updated : Jun 12, 2020 10:18 PM IST | Source: Moneycontrol.com

Business Insight | Decoding RBI's take on corporate governance in banks

The RBI has proposed to limit the tenure of the promoters of the bank as Chief Executive Officers (CEOs) and Whole Time Directors (WTDs) to 10 years if the person is from the promoter group.

On Thursday night, the RBI put out a discussion paper which essentially aims to bring in critical reforms in the governance practices of bank boards and promoters. One of the key points in the discussion paper is separating the ownership from the bank management.

The RBI has proposed to limit the tenure of the promoters of the bank as Chief Executive Officers (CEOs) and Whole Time Directors (WTDs) to 10 years if the person is from the promoter group.

The tenure of a non-promoter CEO will be capped at 15 years, according to a discussion paper floated by the central bank.

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But what happens after this period and who will get affected by the new rules? Why is the central bank thinking of such measures?

Get all your answers in this edition of Business Insight.
First Published on Jun 12, 2020 10:16 pm
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