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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Corporate Governance in Banks - Appointment of Directors and Constitution of Committees of the Board

26-Apr-2021 | RBI/2021-2022/24 DOR.GOV.REC.8/29.67.001/2021-22

RBI had issued a discussion Paper on Governance in Commercial Banks in India on June 11, 2020 to review the framework for governance in commercial banks. In addition to it, RBI has further issued instructions with regard to the Chair and meetings of the board, the composition of certain committees of the board, age, tenure and remuneration of directors, and appointment of the whole-time directors (WTDs), etc. Banks have to comply with these instructions latest by October 01, 2021, specifically- (i) The Chair of the board who is not an independent director shall be allowed to complete the current term as Chair as already approved by the Reserve Bank. (ii) Banks with MD& CEOs or WTDs who have already completed 12/15 years as MD&CEO or WTD, shall be allowed to complete their current term as already approved by the Reserve Bank.

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