How l'affaire RBL Bank may impact RBI's equation with entities it regulates

Private banks' CEO tenures have been in the spotlight since the RBI released its discussion paper on governance in commercial banks in 2020

The Reserve Bank of India (RBI) and the entities it regulates may have to engage much more closely after the turn of events at RBL Bank. The resignation of Vishwavir Ahuja as its managing director (MD) and chief executive officer (CEO), and events in the run-up to it, have caused major unease in the banking fraternity.

The RBI’s clarification after Ahuja’s departure that “the appointment of additional director/s in private banks is undertaken under Section 36AB of the Banking Regulation Act (BR Act: 1949), as and when it is felt that the board needs closer support in regulatory/supervisory matters,” has only