Current Affairs

RBI guidelines for Elected Directors in PSBs

Current context: RBI has issued guidelines that the elected directors in Public Sector Banks will be appointed by the board.
RBI guidelines for Elected Directors in PSBs
  • RBI has mandated that the nomination and remuneration committee of the board of the respective banks will appoint the elected directors of public sector banks (PSBs).
  • RBI has said that all these banks have to constitute a nomination and remuneration committee.
  • The committee would consist of a minimum of 3 non-executive directors from the board, and it should include at least one member from the risk management committee of the board and not less than one-half will be independent directors.
  • The non-executive chairperson of the bank may be appointed as a member of the committee but shall not be the chairman of such a committee.
  • RBI said that an elected director can be appointed for 3 years and could be re-elected but he cannot hold office for more than 6 years.
  • The candidate should not be holding the position of a State Legislature or Member of Parliament or municipal corporation or of other local bodies.

Question: 

Q.1 Which statement is correct regarding RBI guidelines for elected directors in public sector banks?
a. The directors will be nominated by the nomination and remuneration committee
b. all PSBs have to constitute a nomination and remuneration committee
c. only statement b is correct
d. only statement a is correct
e. both a & b are correct
RBI guidelines for Elected Directors in PSBs RBI guidelines for Elected Directors in PSBs Reviewed by Neha Verma on August 03, 2019 Rating: 5

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