- The Reserve Bank of India has come out with the ‘Fit and Proper’ Criteria for Elected Directors on the Boards of PSBs Directions,2019.
- The directions mandates that banks are required to constitute a Nomination and Remuneration Committee(NRC) consisting of a minimum of three non-executive directors from amongst the board of directors.
- An elected director shall hold office for three years and shall be eligible for re-election provided that no director hold office for a period exceeding six years whether served continuously or intermittently.
- The candidates for the post of directors should also not be a member of the board of any rival banks or the RBI or any financial institution.
- The candidates between the age of 35 to 67 years on the cut off date for the submission of nominations for election with graduate as a minimum education qualification will be considered.
- Further,the candidates should not be holding the position of a Member of Parliament or State Legislature or municipal corporation or municipality or other local bodies.
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