RBI reduces reviews of bank boards

The Reserve Bank of India (RBI) has decreased the number of reviews to be undertaken by bank boards. In a circular issued to the chief executives of all public sector banks, the central bank has reviewed the calendar of events to be undertaken by bank boards.

"While retaining the basic structure of the calendar issued in the year 2000, the total number of reviews have been reduced by leveraging the work of the several committees of the boards," said the RBI circular.

RBI added that although the calendar outlines the critical minimum requirements of review the bank boards will have discretion to prescribe additional reviews to suit their requirements.

The revised schedule may be brought into force with effect from 1st July 2005.

If for any particular reason it is not possible to place the memorandum as per the calendar before the board in the month it is due, a note should be put up to the board giving reasons for the delay and when the review is proposed to be placed before the board.

According to the revised calendar of reviews to be put up to the board for every board meeting is funds management, position report, compliance reporting and reports from committees of the board.

On a quarterly basis the board may consider reports from vigilance committee, customer service committee and information technology committee, borrowal accounts, working results, business plans - target and achievement.