RBI: MD-CEOs of private banks should not be more than 70 years old

The Reserve Bank of India ( RBI ) has introduced new rules for the Managing Director and Chief Executive Officer (CEO) of private sector banks. According to the rules, now the MD and CEO of any bank cannot be more than 70 years of age. With this, they cannot hold their post for more than 15 years.

RBI has issued its circular on Monday. According to which no person above the age of 70 years can become MD and CEO nor can anyone stay in his post for more than 15 years.

Mahindra Bank may be the worst loser with this rule as it will not give the bank’s founder CEO Uday Kotak the next term. Who has been in his post for the last 17 years.

RBI has made it clear that the heads of private sector banks will not be more than 70 years old. However, the central bank has also said that the bank boards are free to fix the lower retirement age of such persons. According to the new rules, the upper age of non-executive directors cannot exceed 75 years.

What did the Reserve Bank of India( RBI ) say?

According to the central bank, no non-executive director can remain on the board for more than 8 years. And with this, no person can remain a non-executive director after the age of 75 years. This rule will not be applicable to government and foreign banks.