The Reserve Bank of India wants an upper age limit of 70 years for CEOs and whole-time directors of banks and a maximum term of 10 years for those from the promoter group.
In a discussion paper released on Thursday, the central bank said “The upper age limit for CEO/WTDs of banks is 70 years. Beyond this nobody can continue in the post. Within the overall limit of 70 years, individual bank’s board can prescribe, as an internal policy, a lower age limit for CEO/WTDs.”
The bank further 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”.
