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E-mail ID will not be published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.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture