Elected directors in PSBs will be appointed by board: RBI

  1. The Reserve Bank of India has come out with the ‘Fit and Proper’ Criteria for Elected Directors on the Boards of PSBs Directions,2019.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.