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The committee would review the regulatory compliance requirements of banks’ boards in India, judge what can be rationalised and where requirements need to be enhanced.
Besides that the committee would examine the working of banks’ boards including whether adequate time is devoted to issues of strategy, growth, governance and risk management; to review central bank regulatory guidelines on bank ownership, ownership concentration and representation in the board.
The committee would also analyse the representation on banks’ boards to see whether the boards have the appropriate mix of capabilities and the necessary independence to govern the institution, and to investigate possible conflicts of interest in board representation, including among owner representatives and regulators. In this regard to also assess and review the ‘fit and proper’ criteria for all categories of directors of banks, including tenor of directorship.
It would also examine board compensation guidelines, and any other issue relevant to the functioning of banks’ boards and the governance they exercise.
The committee is expected to submit its report within three months from the date of its first meeting.
