RBI to tighten private banks' succession planning with stricter timeline

Ironclad succession process could weigh on extensions for current heads

The Reserve Bank of India (RBI) may stipulate stricter timelines to identify the managing director (MD) and chief executive officer (CEO)-designates in private banks and for them to settle down in their new roles. Extensions for current corner-room occupants could be linked to how robust the succession planning at the banks they helm is. 

Corner-room aspirants’ ‘demonstrable record of running significant commercial operations’, their board experience, and contribution to its deliberations will be key factors which could be taken into account by the central bank when evaluating candidature. The onus on the nomination and remuneration committee of banks is set