<p>Mumbai: The Reserve Bank of India on Wednesday asked private banks and wholly-owned subsidiaries of foreign banks to ensure at least two Whole Time Directors (WTDs), including the MD & CEO, on their boards to facilitate succession planning.</p>.<p>Given the growing complexity of the banking sector, it becomes imperative to establish an effective senior management team to navigate the ongoing and emerging challenges, the RBI said in a circular.</p>.<p>"Establishment of such a team may also facilitate succession planning, especially in the background of the regulatory stipulations in respect of tenure and upper age limit for Managing Director and Chief Executive Officer (MD & CEO) positions," it said.</p>.<p>The RBI asked banks to ensure the presence of at least two WTDs, including the MD & CEO, on their boards, to address issues and challenges.</p>.RBI nudges reluctant lenders to raise savings deposit rates.<p>The number of WTDs should be decided by the board of the bank by taking into account factors such as the size of operations, business complexity, and other relevant aspects.</p>.<p>"In compliance to these instructions, banks that currently do not meet the minimum requirement...are advised to submit their proposals for the appointment of WTD(s)... within a period of four months," the circular said.</p>.<p>It further said banks, which do not already have the enabling provisions regarding appointment of WTDs in their Articles of Association, may first seek necessary approvals from the RBI, expeditiously.</p>
<p>Mumbai: The Reserve Bank of India on Wednesday asked private banks and wholly-owned subsidiaries of foreign banks to ensure at least two Whole Time Directors (WTDs), including the MD & CEO, on their boards to facilitate succession planning.</p>.<p>Given the growing complexity of the banking sector, it becomes imperative to establish an effective senior management team to navigate the ongoing and emerging challenges, the RBI said in a circular.</p>.<p>"Establishment of such a team may also facilitate succession planning, especially in the background of the regulatory stipulations in respect of tenure and upper age limit for Managing Director and Chief Executive Officer (MD & CEO) positions," it said.</p>.<p>The RBI asked banks to ensure the presence of at least two WTDs, including the MD & CEO, on their boards, to address issues and challenges.</p>.RBI nudges reluctant lenders to raise savings deposit rates.<p>The number of WTDs should be decided by the board of the bank by taking into account factors such as the size of operations, business complexity, and other relevant aspects.</p>.<p>"In compliance to these instructions, banks that currently do not meet the minimum requirement...are advised to submit their proposals for the appointment of WTD(s)... within a period of four months," the circular said.</p>.<p>It further said banks, which do not already have the enabling provisions regarding appointment of WTDs in their Articles of Association, may first seek necessary approvals from the RBI, expeditiously.</p>