Categories: Banking

RBI Caps Tenure of Private Banks MD & CEO at 15 Years

The Reserve Bank of India (RBI) has capped the tenure of Managing Director and Chief Executive of commercial banks to 15 years. The same limit will also be applicable to whole-time directors (WTD). This means that the same incumbent cannot hold the post for more than 15 years.

The revised instructions will be applicable to all the Private Sector Banks including Small Finance Banks (SFBs) and wholly owned subsidiaries of Foreign Banks. However, it will not be applicable to foreign banks operating as branches in India.

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According to the new rules:

The MD & CEO or WTD who is also a promoter/ major shareholder, cannot hold these posts for more than 12 years.
The upper age limit for MD & CEO and WTDs in private banks has been retained at 70 years.
The instructions shall come into effect from the date of issue of this circular, that is April 26, 2021, however, in order to enable a smooth transition to the revised requirements, banks are permitted to comply with these instructions latest by October 01, 2021.

Important takeaways for all competitive exams:

RBI 25th Governor: Shaktikant Das; Headquarters: Mumbai; Founded: 1 April 1935, Kolkata.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.