RBI has issued terms and conditions for the appointment of Managing Director and Permanent Director in major urban public sector banks. According to the instructions issued by RBI on Friday, MPs, MLAs or representatives of municipal corporations cannot apply for these posts.
Reserve Bank of India
Reserve Bank of India has fixed the qualification for Managing Director (MD) and Permanent Director (WTD) in major urban cooperative banks. Information about this has been given by RBI on Friday itself. Under this rule of RBI, MPs or MLAs cannot become managing directors or permanent directors in urban cooperative banks. It further said that candidates for such posts should have post graduate or appropriate qualification in the field of finance.
They must possess a Chartered/Cost Accountant, MBA in Finance or Diploma in Banking/Cooperative Business Management. Such persons should not be less than 35 years and not more than 70 years of age.
These candidates can also become directors of cooperative banks
The notification issued by the RBI said, ‘The candidate should have at least 8 years of experience in middle/senior management of banking sector or experience of working in companies in non-banking finance. Should have experience of working in only those NBFCs, which deal in lending and asset financing.
Apart from MP-MLA, they will also not get permission
Apart from MPs, MLAs and representatives of Municipal Corporation, such post cannot be given to persons having special interest in business, trade or any company. Regarding the period of appointment, RBI has said that a person is appointed to these posts for a period of 5 years. After that such person will be eligible for reappointment.
What will be the conditions for reappointment after the tenure?
However, the RBI also said that a person cannot hold the position of a managing director or a permanent director of major urban cooperative banks for more than 15 years. In some exceptional cases, such person can be re-employed after a cooling off period of 3 years.
It was also said in the notification that if the existing Managing Director or Chief Executive Officer of an urban cooperative bank has completed the tenure of 5 years, he can again apply to the central bank for appointment to this post. If they are found eligible, they can be reappointed within 2 months.
If an urban government bank wants to remove MD / WTD from the post before the tenure, then for this it will need to take permission from RBI. This direction of RBI is only for major urban cooperative banks.
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