Reserve Bank of India to ask bank boards to focus on policy, not operations
The Reserve Bank of India plans to revise guidelines for bank boards to encourage greater focus on policy matters rather than day-to-day operations, Governor Sanjay Malhotra said in a monetary policy speech on Wednesday.
The move follows recent tensions at HDFC Bank, the country's largest lender, where the chairman resigned abruptly, citing differences over "values and ethics."
Reuters has previously reported, citing sources, that the chairman's involvement in operational and management matters had led to internal friction with CEO Sashidhar Jagdishan.
"A comprehensive review of instructions is being undertaken following the request of banks, which will facilitate better utilisation of bank boards' time," Malhotra said.
"We propose to revise and rationalise matters that require the attention of the board. This will result in boards being able to divert more time to policy matters, leaving operational matters to the management."
