Letter to BS: Why no central bank's nominee should be on PSB boards

This is with reference to “No RBI Nominee should be on PSB Boards: Patel” (June 13). I entirely agree with views of the Reserve Bank of India (RBI) Governor Urjit Patel (pictured). As a former RBI nominee director on the board of a PSB, directors have very little role to play especially in the management committees. They either endorse the loan proposals or advise caution in sanctioning proposals that may or may not be heeded by the chief managing director or the director of the PSBs. Often undue pressure is exerted on them to sanction loan proposals devoid of merit.