New Delhi: Central Board reserve Bank of India (reserve Bank of India) is facing a shortage of nine non-official directors, of whom seven are from the ranks of eminent personalities from different fields.
The Central Board is the apex decision-making body of the apex bank, headed by the RBI Governor.
As per the RBI Act, the government nominates 10 eminent persons from different sectors to the central board of the RBI, in addition to four directors (one from each of the four local boards).
The government is yet to appoint seven non-official directors from the ranks of eminent people from different regions, while local board representatives from western and southern regions are missing.
Presently only three eminent personalities – Tata Sons Chairman Natarajan Chandrasekaran, veteran banker S The Marathas and Chartered Accountant and RSS ideologue Swaminathan Gurumurthy – serving the Central Board. According to the RBI website, he has been nominated under Section 8(1)(c) of the RBI Act, 1934.
In relation to the directors of the local boards, the Eastern Region is represented by Sachin Chaturvedi and Northern Zone by Revathi Iyer, while nominations of two directors are awaited.
These non-official directors are appointed for a term of four years and are eligible for reappointment.
In June last year, Chandrasekaran was re-appointed retrospectively as a non-official director for a period of two years beyond March 3, 2020.
In addition, there is a provision for the appointment of two government officials in the central board. Economic Affairs Secretary Ajay Seth and Financial Services Secretary Debashish Panda have been appointed as directors under this category.
As far as the official directors are concerned, the board has full representation with the governor and four deputy governors.
Taking into account the five official directors, there can be a total of 21 directors on the central board of RBI as prescribed by the Act.
Four non-official directors, including former Gujarat chief secretary Sudhir Mankad and Mahindra & Mahindra’s former group CFO Bharat N Doshi, completed their tenures last year.
The other two directors Prasanna Kumar Mohanty and Dilip S Sanghvi served on the central board till February 8, 2021 and March 10, 2021, respectively. Noted agricultural economist Ashok Gulati and TeamLease co-founder Manish Sabharwal also completed their tenure earlier this year.
The Central Board is the apex decision-making body of the apex bank, headed by the RBI Governor.
As per the RBI Act, the government nominates 10 eminent persons from different sectors to the central board of the RBI, in addition to four directors (one from each of the four local boards).
The government is yet to appoint seven non-official directors from the ranks of eminent people from different regions, while local board representatives from western and southern regions are missing.
Presently only three eminent personalities – Tata Sons Chairman Natarajan Chandrasekaran, veteran banker S The Marathas and Chartered Accountant and RSS ideologue Swaminathan Gurumurthy – serving the Central Board. According to the RBI website, he has been nominated under Section 8(1)(c) of the RBI Act, 1934.
In relation to the directors of the local boards, the Eastern Region is represented by Sachin Chaturvedi and Northern Zone by Revathi Iyer, while nominations of two directors are awaited.
These non-official directors are appointed for a term of four years and are eligible for reappointment.
In June last year, Chandrasekaran was re-appointed retrospectively as a non-official director for a period of two years beyond March 3, 2020.
In addition, there is a provision for the appointment of two government officials in the central board. Economic Affairs Secretary Ajay Seth and Financial Services Secretary Debashish Panda have been appointed as directors under this category.
As far as the official directors are concerned, the board has full representation with the governor and four deputy governors.
Taking into account the five official directors, there can be a total of 21 directors on the central board of RBI as prescribed by the Act.
Four non-official directors, including former Gujarat chief secretary Sudhir Mankad and Mahindra & Mahindra’s former group CFO Bharat N Doshi, completed their tenures last year.
The other two directors Prasanna Kumar Mohanty and Dilip S Sanghvi served on the central board till February 8, 2021 and March 10, 2021, respectively. Noted agricultural economist Ashok Gulati and TeamLease co-founder Manish Sabharwal also completed their tenure earlier this year.
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