Business Economy

RBI central board short of 9 non-official directors

According to the RBI Act, the government nominates 10 eminent persons from various fields to the central board of the RBI, besides four directors (one from each of the four local boards)

The central board of the Reserve Bank of India (RBI) is facing shortage of nine non-official directors, including seven from the category of people of eminence from various fields. The central board is the highest decision-making body of the apex bank headed by the RBI governor.

According to the RBI Act, the government nominates 10 eminent persons from various fields to the central board of the RBI, besides four directors (one from each of the four local boards).

The government is yet to appoint seven non-official directors from the category of people of eminence from various fields while representations from the local board from western and southern areas are missing.

Currently, only three eminent personalities — Tata Sons Chairman Natarajan Chandrasekaran, seasoned banker S K Marathe and chartered accountant and RSS ideologue Swaminathan Gurumurthy — are serving the central board. They are nominated under Section 8(1)(c) of the RBI Act, 1934, according to the RBI’s website.

With regard to directors from local boards, eastern area is represented by Sachin Chaturvedi and northern area by Revathy Iyer, while nomination of two directors is awaited.

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