Reserve Bank Governor Shaktikanta Das (File Photo)
Das will address the directors, both full-time and independent, on topics related to governance, ethics and the role of the boards in the assurance functions of the banks, in addition to highlighting supervisory expectations
Reserve bank governor Shaktikanta Das will meet the board of directors of all public sector banks next month to discuss governance and ethics issues.
The one-day meeting organized by the Reserve Bank of India’s Department of Supervision will be held in Delhi on May 22, sources said.
Das will address directors — both on-the-go and independently — on issues related to governance, ethics and the board’s role in the banks’ assurance functions, in addition to emphasizing supervisory expectations, sources said.
In addition to the governor, the RBI communication sent to all public sector banks said deputy governors, executive directors of the Department of Regulation and Supervision will attend the meeting.
The one-day event is designed as an interactive event where directors, including the bank chairman, and nominee directors from both the central bank and government are invited to interact with the entire RBI chief executive.
The government has introduced many governance reforms on the recommendation of the Reserve Bank and has recently granted more autonomy to the governance of public sector banks.
The reforms also include an independent professional body for selection, objective and transparent selection and award based on merit cum performance.
For the appointment of full-time directors in public sector banks and financial institutions, the government established Banks Board Bureau (BBB) in 2016, which was transformed into Financial Services Institutions Bureau (FSIB) last year.
Guidelines for the selection of managing directors and directors of non-life insurers in the public sector are part of FSIB.
In addition, in 2015 the government approved the proposal to separate the functions of chairman and directors in the public sector banks (PSBs).
While the chairman is non-executive, the Managing Director and Chief Executive Officer (MD&CEO) is the executive head.
The split of the positions of chairman and managing director is in line with international best practices.
While the chairman provides general policy direction, MD and CEO are responsible for the day-to-day management of the bank.
Read all the latest business news, tax news and stock market updates here
(This story has not been edited by News18 staff and was published from a syndicated news agency feed)
