The Reserve Bank of India (RBI), on Monday, constituted an expert committee to review governance of boards of banks under the chairmanship of P. J. Nayak, former Chairman and CEO of Axis Bank. “The Committee is expected to submit its report within three months from the date of its first meeting,” said RBI in a release. The committee would review the regulatory compliance requirements of banks’ boards in India, and judge what could be rationalised and where requirements needed to be enhanced, it added.
The other terms of reference of the committee would be to analyse the representation on banks’ boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible “conflicts of interest” in board representation, including among owner representatives and regulators.
