**Policy Summary: RBI/2016-17/152**
**Subject:** Broadening of Special Knowledge and Practical Experience for Bank Directors
**Issuing Authority:** Reserve Bank of India (RBI), Department of Banking Regulation
**Date of Issuance:** November 24, 2016
**Applicability:** All Commercial Banks excluding Regional Rural Banks (RRBs)
**Purpose:** To augment the domain knowledge and experience of directors on the boards of commercial banks (excluding RRBs) in light of innovations in banking and technology. This is intended to better equip banks to manage diversified business portfolios and associated risks.
**Key Provisions:** The RBI has broadened the fields of specialization considered useful for directors to include:
* Information Technology
* Payment Settlement Systems
* Human Resources
* Risk Management
* Business Management
The notification is issued in exercise of the powers conferred by:
* Section 10A(2)(a)(ix) of the Banking Regulation Act, 1949
* Section 19A(1)(a)(viii) of the State Bank of India Act, 1955
* Section 25A(1)(a)(viii) of the State Bank of India Subsidiary Banks Act, 1959
* Section 9(3A)(a)(viii) of the Banking Companies Acquisition and Transfer of Undertakings Act, 1970/1980
**Contact Information:** Ajay Kumar Choudhary, Chief General Manager, Department of Banking Regulation, Central Office, Central Office Building, 13th Floor, Mumbai – 400001. Tel No: 022-22701245, Fax No: 022-22701240, Email ID: cgmicdbr@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Commercial Banks: Banks excluding Regional Rural Banks (RRBs).
Banking Regulation Act, 1949: An act of the Parliament of India to regulate banking companies.
State Bank of India Act, 1955: An act related to the State Bank of India.
State Bank of India Subsidiary Banks Act, 1959: An act related to subsidiary banks of the State Bank of India.
Banking Companies Acquisition and Transfer of Undertakings Act, 1970 1980: An act concerning the acquisition and transfer of undertakings of banking companies.
Information Technology: One of the specialized areas of knowledge deemed useful for directors of banking companies.
Risk Management: One of the specialized areas of knowledge deemed useful for directors of banking companies.
RBI/2016-17/152
DBR.Appt.BC.No.39/29.39.001/2016-17 November 24, 2016
All Commercial Banks excluding RRBs
Dear Sir / Madam,
Special knowledge or practical experience useful to banking companies
In the backdrop of innovations in banking and technology, it is felt that the domain
knowledge and experience enumerated under various statutory provisions for the
directors on the boards of commercial banks (excluding RRBs) need to be
augmented by knowledge and experience in other specialized areas, to guide the
banks in managing their diversified business portfolios and risks. It has, therefore,
been decided to br oaden the fields of specialization to include (i) Information
Technology (ii) Payment & Settlement Systems (iii) Human Resources (iv) Risk
Management and (v) Business Management, for persons who could be considered
for appointment of director in the banks.
2. A copy of the relative notification DBR.Appt.BC.No.38/29.39.001/2016-17
dated November 24, 2016, is enclosed.
Yours faithfully,
(Ajay Kumar Choudhary)
Chief General Manager
Encl: Notification
_________________________________________________________________________________________
ब��कंग �व�नयमन �वभाग, केन्द्र�य कायार्लय भवन, 13 वीमंिजल, मुंबई - 400001
Department of Banking Regulation, Central Office, Central Office Building, 13th Floor Mumbai -400001
टे�लफोन/ेTel No:022-22701245, फैक्सF/ax No:022-22701240, Email ID: cgmicdbr@rbi.org.inNOTIFICATION
RESERVE BANK OF INDIA
DEPARTMENT OF BANKING REGULATION
DBR.Appt.BC.No.38/29.39.001/2016-17 November 24, 2016
Special knowledge or practical experience useful to banking companies
In exercise of the powers conferred by Section 10A (2)(a)(ix) of the Banking
Regulation Act, 1949,Section 19A(1)(a)(viii) of State Bank of India Act, 1955, Section
25A(1)(a) (viii) of State Bank of India (Subsidiary Banks) Act, 1959, and
Section 9(3A)(A)(viii) of Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970/1980, Reserve Bank of India hereby notifies that special
knowledge or practical experience in matters or areas relating to (i) Information
Technology (ii) Payment & Settlement Systems (iii) Human Resources (iv) Risk
Management and (v) Business Management would be useful to a banking
company, State Bank of India, subsidiary bank and a corresponding new bank, as
the case may be.
(Sudarshan Sen)
Executive Director