With reference to Reserve Bank of India RBI rsquo s discussion paper on Governance in Commercia...........

Economic Affairs Types of Banks and Banking

With reference to Reserve Bank of India (RBI)’s discussion paper on Governance in Commercial Banks in India, consider following statements

Board members should not be a member of any other bank’s board or the RBI and should not be either a Member of Parliament or State Legislature or Municipality or other local bodies.
The board shall meet at least twelve times a year and at least once every 60 days.
The proposed norms will be applicable to private, foreign and public sector bank.

Select the correct statement.

1&2 only

2&3 only

1&3 only

All of the above

छोटे Courses बड़े Results

Master Types of Banks and Banking

Prepare through Micro-courses

Try Now

Explanation:

Recently, the Reserve Bank of India (RBI) released a Discussion Paper on ‘Governance in Commercial Banks in India’ for public comments. The objective of the discussion paper is to align the current regulatory framework with global best practices while being mindful of the context of domestic financial system. Based on the feedback, fresh guidelines will be issued. The new norms will come into effect within six months after being placed the RBI’s website or April 1, 2021, whichever is later. The norms will be applicable to private, foreign and public sector banks.
Some of the major highlights of the paper are as follows:

Board members should not be a member of any other bank’s board or the RBI and should not be either a Member of Parliament or State Legislature or Municipality or other local bodies.
Board of directors of a bank should not be less than six and not more than 15, with a majority being independent directors.
The board shall meet at least six times a year and at least once every 60 days., Hence only statements 1&3 are correct.