MUMBAI (Reuters) – Indian banks must ensure the presence of at least two whole time directors (WTDs), including the managing director and chief executive officer, on their boards, the Reserve Bank of India said on Wednesday.
“Given the growing complexity of the banking sector, it becomes imperative to establish an effective senior management team in the banks to navigate ongoing and emerging challenges,” the RBI said in a statement.
“The number of WTDs shall be decided by the Board of the bank by taking into account factors such as the size of operations, business complexity, and other relevant aspects.”
Banks that currently do not meet the requirement must submit proposals for appointment of WTD(s) within a period of four months, the central bank added.
(Reporting by Swati Bhat; editing by Sudipto Ganguly)