Question
Recently the Government raises maximum tenure of PSU
banks' CEO to ____ years, from the earlier 5 years.Solution
The maximum tenure of CEO and MD of public sector banks has been increased to 10 years, a move that will help the government retain the best talent in the banking sector. The term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years. This is also applicable for whole-time directors of all Central Public Sector Enterprises (CPSEs). The amendment would be called Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022. The central government has the right to terminate the term of office of a whole-time director, including the managing director, any time before the expiry of the term specified, by giving him a notice of not less than three months, in writing or three months’ salary and allowances in lieu of notice. The decision of the government would help banks to retain the talent who rise to the ladder of whole-time directors at a very early age of 45-50 years.
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