RBI Guv addresses board members of PSU banks on governance, ethics

23 May 2023 , 08:34 AM

Shaktikanta Das, the governor of the Reserve Bank, met with the boards of directors of all public sector banks on Monday to examine concerns pertaining to ethics and governance. The Reserve Bank of India’s Department of Supervision organized the one-day interactive meeting.

According to reports, Das spoke to the directors, both full-time and independent, about matters of governance, ethics, and the role of boards in the assurance functions of the banks in addition to emphasizing the supervisory requirements.

Deputy governors, executive directors from the Departments of Regulation and Supervision, as well as the governor, also spoke during the meeting.

Directors, including the bank chairman, and nominee directors from the government and the central bank were invited to speak with the full RBI executive team during the occasion.

On the Reserve Bank’s advice, the government recently implemented a number of governance reforms and gave the board of public sector banks additional autonomy.

Additionally, the proposal to split the Chairman and Managing Director positions in Public Sector Banks (PSBs) was accepted by the government in 2015.

The Managing Director and Chief Executive Officer (MD & CEO) is the executive head, and the Chairman serves in a non-executive capacity.

International best practices were followed in dividing the chairman and managing director positions.

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