RBI NOMINEE ON BANK BOARD ONLY IN EXIGENCY

The government is toying with the idea of incorporating provisions in the Banking Regulation Act to empower the Reserve Bank of India (RBI) to appoint its nominee on the board of a Public Sector Bank (PSB) in the event of exigencies. The consideration comes in the wake of stiff opposition to the central bank's move to withdraw its directors from banks, including those in the public sector.