The term of the chief of private banks will not be more than 15 years now, RBI gave instructions


The Reserve Bank has said that the MD and CEO of a private bank cannot continue in this position for 15 consecutive years. If a promoter is a CEO, he cannot hold this position for more than 12 years. & nbsp; RBI has said that in order to meet the new requirements of the bank, it is necessary that if an existing chief has completed 12 or 15 & nbsp; years & nbsp; then he should end his tenure. & nbsp;

Many bank chiefs held the position for more than 15 years & nbsp;

Uday Kotak, promoter of Kotak Mahindra Bank, is currently the longest tenured bank chief. He took charge of the bank in 2003. However, on 1 January 2021, the RBI approved his next three-year term as MD and CEO. Earlier in October 2020, Aditya Puri left the post of MD of HDFC Bank. He was in this post for 25 consecutive years. & Nbsp;

If needed, the appointment will be done after a gap of three years

RBI has said in one of its notifications that MD-CEO or Whole Time Director of a private bank cannot & nbsp; hold this position for more than 15 years. if. If the bank’s need to re-appoint it for a & nbsp; can only happen after a three-year gap, but only after some conditions & nbsp; and the board’s approval. In this cooling period of three years, the MD or CEO of the bank should not be appointed in the bank in any capacity nor should its company or business body be related to the bank. Apart from this, the post of MD and CEO of the bank cannot be given to a person above 70 years of age.

Effect of Corona: More things to be added in essential goods and services, government will soon take a decision & nbsp;

Senior citizens invest in these schemes for regular income, will remain in profit

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