Which of the following statements is/are correct with reference to the private sector bank?
A. The Reserve Bank of India (RBI) recently fixed the tenure of MD, CEO and whole-time director (WTD) in a private sector bank at 15 years and prescribed the maximum age of 70 years for such functionaries.
B. The individual will be eligible for re-appointment as MD & CEO or WTD in the same bank, if considered necessary and desirable by the board, after a minimum gap of three years.
C. Both A & B
D. None of these
Explanation:
The Reserve Bank of India capped both the tenure and age limit for senior management including that of chairmen in all private banks. While the cap for non-executive directors, and chairman is set at 75 years, their tenure is fixed for 8 years. Thereafter, the individual will be eligible for re-appointment as MD & CEO or WTD in the same bank, if considered necessary and desirable by the board, after a minimum gap of three years, subject to meeting other conditions. With regard to upper age limit for MD & CEO and WTDs in the private sector banks, the RBI said that no person can continue in such positions beyond the age of 70. The maximum age limit for chairman and non-executive directors has been fixed at 75 years.
