70 years age ceiling for bank CEOs, WTDs fixed
The RBI has proposed an upper age limit of 70 years for CEOs and whole-time directors of banks and a maximum term of 10 years for those belonging to the promoter group, as part of the exercise to improve governance in the banking sector.
The discussion paper released by the RBI said CEOs and whole time directors (WTDs) belonging to the promoter group should pass on the managerial leadership to professionals after ten years.
“The upper age limit for CEO/WTDs of banks is 70 years. Beyond this nobody can continue in the post. Within the overall limit of 70 years, individual bank’s board can prescribe, as an internal policy, a lower age limit for CEO/WTDs,” it said.
To introduce a robust culture of sound governance practice and adopt the principle of separating ownership from management, the paper said “it is desirable to limit the tenure of the WTDs or CEOs.” RBI has invited comments from stakeholders by July 15, 2020.