The Reserve Bank of India (RBI) has issued a set of instructions on governance for private sector banks. The key takeaway from these new rules, which are on expected lines, is that the posts of a MD, CEO and whole time director can't be held by the same incumbent for more than 15 years. It also talked about the cap for promoters of private banks for holding these posts and age cap for bank chairmen.
To decode the new rule and its implications, Latha Venkatesh spoke to DK Mittal, former secretary of financial services; SC Garg, former secretary of finance; Rajnish Kumar, former chairman of State Bank of India and NS Vishwanathan, former deputy Governor of RBI.
Watch video to know what they had to say.