Tuesday, September 9, 2014

RBI says 70 years upper age for private bank CEOs, whole-time directors

RBI says 70 years upper age for private bank CEOs, whole-time directors
Following this notification, nobody will be allowed to continue as a director in private sector banks beyond the age of 70.
Joel Rebello Mint 9 Sep 2014
The change has been done in light of provisions in the Companies Act, 2013 
Mumbai: The Reserve Bank of India (RBI) on Tuesday capped the maximum age till which a person can continue to be managing director, chief executive officer or a whole time director in a private sector bank at 70 years.
Previously there was no such age limit for directors. The change has been done in light of provisions in the Companies Act, 2013, which says, “No company shall appoint or continue the employment of any person as managing director, whole time director or manager who is below the age of 21 years or has attained the age of 70 years,” RBI said.
Following this notification, nobody will be allowed to continue as a director in private sector banks beyond the age of 70. However, bank boards are free to prescribe a lower retirement age for whole time directors and CEOs as an internal policy, RBI said.

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