GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES

 RAJYA SABHA
UNSTARRED QUESTION NO. 2193
TO BE ANSWERED ON THE 30^TH NOVEMBER, 2010 / AGRAHAYANA 9, 1932(SAKA)
Norms for Appointment of RBI Directors
Question

2193. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state:

(a)        the norms and criteria for the appointment of Directors on the Board of the Reserve Bank of India (RBI); and

(b)       the steps Government has taken to ensure that borrowers and creditors to the India banking system are not appointed to the Board of RBI, which is the regulator of banks?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

(a) and (b) :- Directors on the Board of the Reserve Bank of India (RBI) are appointed in terms of the provisions of section 8 of the Reserve Bank of India Act, 1934 and guidelines dated December 10, 2007 on selection of Part Time Non-Official Directors, duly approved by Appointments Committee of the Cabinet (ACC).

In order to ensure that persons with fit and proper criterion are appointed on the Board of the bank, Government of India (GOI) forwards the Bio-data of the candidates to Central Board of Direct Taxes, Revenue Intelligence, Central Excise Intelligence, Department of Enforcement and to the Reserve Bank of India for doing due diligence.

Based on the GOI guidelines and on the basis of the verification reports of the investigating agencies, besides independent scrutiny of the bank accounts of the persons by RBI, the proposals are recommended to the ACC for appointment.