RBI sets up panel to review governance of bank boards

Tags: News
The Reserve Bank of India today set up an eight-member panel to review functioning of board of banks and examine 'fit and proper' criteria for directors, including their tenure.

The Committee, to be headed by former Axis Bank Chairman P J Nayak, will analyse representation on bank boards to see whether the boards have appropriate mix of capabilities and necessary independence to govern the institution.

It will also investigate possible conflicts of interest in board representation, including among owner representatives and regulators.

"In this regard to also assess and review the ‘fit and proper’ criteria for all categories of directors of banks, including tenor of directorship," RBI said in a statement.

According to the terms of reference, the committee will review the regulatory compliance requirements of bank boards and also judge what can be rationalised and where requirements need to be enhanced.

The panel, which is expected to submit its report within three months from the date of its first meeting, will also examine the working of bank boards, including whether adequate time is devoted to issues of strategy, growth, governance and risk management.

It will also review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board, it said.

The panel is set to examine board compensation guidelines, and any other issue relevant to the functioning of bank boards and the governance they exercise.

Other members of the panel are S Raman, whole time member, Sebi, Shubhalakshmi Panse, Chairperson, Allahabad Bank, Pratip Kar, former executive director, Sebi, Joydeep Sengupta, director, McKinsey & Company, Harsh Vardhan, Partner, Bain & Company, Somasekhar Sundaresan, partner, J. Sagar Associates, and K Subramanian, assistant professor, Indian School of Business.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • This is right time for retail investors to enter the debt market

    Quite often, retail investors are ridiculed for entering the equities market in droves, signalling the first signs of a bubble on the Street.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Zehra Naqvi

What imperfections in nature teach man

Each one of us has faced a time when we ...

Dharmendra Khandal

A wondrous world under the ground

Burrows and dens are safe homes for many kinds of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture