RBI asks PM Modi to trim govt stake in state-owned banks to 26%: Report

Chief executives of public sector lenders must get longer tenures: Central bank reportedly tells PM in meeting with financial regulators.

The government should reduce its stake in state-owned banks to 26 per cent and give their leaders longer tenures for professional management, the Reserve Bank of India (RBI) has told the Prime Minister, the Economic Times reported on Friday.

The RBI gave Modi a presentation Thursday when he met with the heads of financial regulators to discuss measures to revive the economy hit by the coronavirus pandemic. It suggested that the managing directors and chief executive officers of state-run banks should have a term of three to years and their salaries should match the private sector, Economic Times reported. The government’s