Question- Recently, RBI has fixed the tenure of MD,CEO and WTD in private sector banks. Which of the following is the new tenure of MD,CEO and WTD?
(a) 15 years
(b) 20 years
(c) 25 years
(d) 10 years
Ans. (a)
Related Facts-
- The Reserve Bank of India (RBI) has fixed the tenure of Managing Director (MD), Chief Executive Officer (CEO) and whole-time director (WTD) in a private sector bank at 15 years and prescribed the maximum age of 70 years for such functionaries.
- “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,”.
- Added that 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.
- With regard to the upper age limit for MD & CEO and WTDs in the private sector banks, the RBI said that no person can continue in such positions beyond the age of 70 years. The banks’ boards, however, will be free to prescribe a lower retirement age for the WTDs, including the MD & CEO.The maximum age limit for chairman and non-executive directors has been fixed at 75 years.
By- Yogesh Pratap Singh