The Reserve Bank of India (RBI) on Monday fixed the tenure of MD, 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.
These directives form part of the instructions issued by the RBI on Monday with regard to the chair and meetings of the board, composition of certain committees of the board, age, tenure and remuneration of directors, and appointment of the WTDs.
The RBI said it would come out with a Master Direction on Corporate Governance in banks in due course. “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,” it said.
It 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 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. The maximum age limit for chairman and non-executive directors has been fixed at 75 years.
