Kochhar challenges RBI decision to terminate her; HC seeks bank's response

Banking Regulation Act says that prior approval of the RBI is required to terminate the contract of a bank's chairman or managing director

Chanda Kochhar, former managing director and chief executive officer of ICICI Bank, on Monday challenged the Reserve Bank of India’s (RBI) approval in terminating her. She said the move was illegal and had no legal base.

The central bank on March 13 gave its consent to the bank management on Kochhar’s termination, after the bank fired her on January 31. Kochhar is now contesting that the bank should have secured the RBI’s permission first before terminating her services.  
 

Kochhar had originally moved against the bank, but decided to file an amended petition, making the central bank party to the case.