On 25-10-2023, the Reserve Bank of India (‘RBI’) directed all the Private Sector Banks and Wholly Owned Subsidiaries of Foreign Banks to ensure the presence of at least 2 Whole Time Directors (‘WTD’) to reduce the growing complexity of the banking sector and to establish an effective senior management team in banks to navigate ongoing and emerging challenges.
Key Points:
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The banks should have at least 2 WTD and MD & CEO on their Board.
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The number of WTD can be decided by the Board of the bank.
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Factors to decide the number will be based on the size of operations, business complexity, etc.
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Banks that do not fulfill the minimum requirement can comply by submitting the proposal within 4 months.
