New Delhi: Central Board of Reserve Bank of India (RBI) faced a shortage of nine non-official directors, including seven of the categories of people who sprung up from various fields.
The Central Council is the highest decision-making body from Apex Bank led by the Governor of RBI.
According to the RBI law, the government nominated 10 prominent people from various fields to the RBI Council, in addition to four directors (one of each of the four local councils).
The government has not yet appointed seven non-official directors of the categories of people from various fields while representation of the local council of West and South regions is lost.
At present, only three leading personality – Chairman of Tata Sons Natarajan Chandrasekan, experienced banker S K Marathe and Chartered Accountant and RSS ideologist Swaminathan Gururuhy – serve the central council.
They are nominated under Section 8 (1) (c) RBI Law, 1934, according to the RBI website.
With regard to the director of the local council, the eastern region was represented by Sachin Chaturvedi and the northern region by Revathy Iyer, while the nomination of the two directions was awaited.
This non-official director was appointed for a period of four years and qualified to refer to again.
In June last year, Chandrasekan was appointed again retrospectively as a non-official director for the next two years outside March 3, 2020.
In addition, there are provisions for two government officials to be appointed on the Central Board.
Under this category, Economic Affairs Secretary Ajay Seth and Secretary of Financial Services Debasish Panda has been appointed as Directors.
As far as the official director concerns, the council has a full representation with the governor and four deputy governors.
Consider the five official directors, the RBI Council as determined by laws can have a total of 21 directors.
A total of four non-official directors, including former Chief Secretary Gujarat Sudhir Mankad and former Group Mahindra & Mahindra CFO Bharat N Doshi, completed their term last year.
Two other directors, Prasnana Kumar Mohanty and Dilip S Shanghvi, served on the central council until February 8, 2021, and March 10, 2021, respectively.
Ashok Gulati’s leading agricultural economist and the teamlease Co-Founder Manish Sabharwal also completed the term of office earlier this year.