The RBI has proposed an upper age limit of 70 years for CEOs and whole-time directors of banks and a maximum term of 10 years for those belonging to the promoter group, as part of the exercise to improve governance in the banking sector.
RBI said that “10 years is an adequate time limit for a promoter/ major shareholder of a bank as WTD or CEO of the bank to stabilise its operations and to transition the managerial leadership to a professional management. This will not only help in achieving the separation of ownership from management but also reinforce a culture of professional management”.
A management functionary “who is not a promoter/major shareholder can be a WTD or CEO of a bank for 15 consecutive years”,
