Non Exec. Chairman of PSU banks can be nominated to Audit Committees of Bank Boards

The Reserve Bank of India (RBI) has informed all PSU banks that in view of the bifurcation of the post of Chairman and Managing Director of Public Sector Banks by Government of India into a Non-executive Chairman to give an overall policy direction to the bank and a full time executive Managing Director and Chief Executive Officer (MD&CEO) to oversee the day to day functioning of the bank, it is clarified that in banks where the Board of Directors is chaired by a Non-executive Chairman, there will not be any restriction if he/she is also nominated to the Audit Committee of the Board of Directors.