The maximum age of office-bearers has also been fixed in thenew guideline.
According to the new RBI guidelines, the maximum age of MD or CEO of any private bank should not be more than 70 years.
Boards of private banks including MDs and CEOs are free to set the retirement age of WTD within the age limit of 70 years.
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It is to be noted that these guidelines will be applicable to private banks, small finance banks, subsidiaries of foreign banks.
Apart from this, if a foreign bank is running a branch in India, then these new guidelines will not apply to it.
New guidelines will not apply to any foreign bank branch in India.
The guideline also states that MDs, CEOs or WTDs who are promoters or major shareholders also do not hold these positions for more than 12 years.
Can. Banks will have to implement the instructions by October 1, 2021. The central bank stated that in exceptional circumstances,
at the sole discretion of the Reserve Bank, MD and CEO or WTD, who are also promoters or significant shareholders, may be allowed to continue their service for 15 years.
RBI will bring Master Direction on Corporate Governance
RBI has said that it will bring a master direction regarding corporate governance of banks in the coming time. Let us know that on Friday,
the RBI took strong action against American Express Banking Corporation and Diners Club International Ltd.
The RBI had instructed these banks not to issue cards to new customers from May 1, for violation of data storage related rules.
The RBI issued a statement on Friday, saying that the order would not affect existing customers.
RBI imposes fine of three crore rupees on ICICI Bank
ICICI Bank said in a notice filed in the stock exchange that in May 2017,
certain investments from HTM category to AFS category have been fined under certain provisions of the Banking Regulation Act, 1949.
The Reserve Bank of India said on Monday that ICICI Bank has been fined Rs 3 crore for the violation of certain guidelines, which has been imposed for violation of the guidelines given in the Masteron Circular.
Penalty imposed due to this
ICICI Bank said in a notice filed in the stock exchange that in May 2017,
certain investments from HTM category to AFS category have been fined under certain provisions of the Banking Regulation Act, 1949.
The Reserve Bank said that the transfer of securities for the second time in May 2017 without explicit approval is a violation of its instructions.