Reserve Bank of India has asked private banks and wholly owned subsidiaries of foreign banks to ensure at least two Whole Time Directors (WTDs), including the MD and CEO, on their boards to facilitate succession planning.
In an official note, the RBI said, the number of Whole Time Directors should 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.
The RBI directed banks that currently do not meet this requirement to submit their proposals for the appointment of WTDs under the Banking Regulation Act, 1949, within a period of four months from the date of issuance of the circular.
