Home / Finance / News / RBI likely to put its foot down, reinstate Gurbaxani at Dhanlaxmi Bank

RBI likely to put its foot down, reinstate Gurbaxani at Dhanlaxmi Bank

RBI's powers under BR Act to decide fate of bank bosses, not Companies Act

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Last month, 90.49 per cent of the bank’s shareholders voted against Gurbaxani’s appointment as MD and CEO despite the blessings received from the board of directors and the banking regulator

Raghu Mohan Mumbai

3 min read Last Updated : Nov 16 2020 | 12:51 AM IST

The Reserve Bank of India (RBI) may reinstate Sunil Gurbaxani in the corner-room at Dhanlaxmi Bank and underscore the primacy of powers given to it under the Banking Regulation (BR) Act, 1949. The banking regulator is also said to be looking into the bank’s larger accounts to see if credit decisions were unduly influenced.

“Gurbaxani’s removal from his post by shareholders is a test case. There is no precedent for the bank’s managing director (MD) and chief executive officer (CEO) being removed from his post in this manner. It’s only the RBI under the BR Act which has the powers

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