Why is it important to limit tenure?
- The tenure has been limited in order to strengthen the culture of consistent governance and to adopt the principle of separating management from ownership.
- It further states that 10 years is sufficient time for the promoter / major shareholder of a bank to stabilize his work as a WTD or CEO of a bank and transform managerial leadership into a professional management. This will not only help in separating management from ownership, but will also promote the culture of professional management.
Who will be the WTD or CEO?
A management functionary who is not a promoter/major shareholder can be a WTD or CEO of a bank for 15 consecutive period & thereafter, the individual could be eligible for re-appointment as WTD or CEO only after the expiration of three years,or up to the expiry of the current WTDs/CEOs tenure, during which he/she not be appointed or associated with the bank in any capacity, either directly or indirectly, advisory or otherwise.
About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed).