Allow bank boards to hire and fire CEOs, says Raghuram Rajan

The former RBI governor said bank boards needed more independence

Former Reserve Bank of India (RBI) governor Raghuram Rajan has said bank boards needed to be more independent and should be able to hire and fire chief executive officers (CEOs) without needing to take permission from the government.

“When we get there, we will have truly created the distance between the government and the public sector banks. One indication that we have achieved that will be the day we can close down the department of financial services,” which is continuing to introduce sameness in public sector banks, Rajan said at an event to launch his book I Do What I Do