RBI seeks new names for Federal Bank CEO post

RBI seeks new names for Federal Bank CEO post

RBI seeks new names for Federal Bank CEO post

Here is a friendly News summary about RBI seeks new names for Federal Bank CEO post:

Banks in India are regulated by the Reserve Bank of India (RBI). The RBI makes rules that banks have to follow to keep people’s money safe.

Banks have a Chief Executive Officer (CEO) who is the top boss responsible for running the bank. When a CEO’s term finishes, the bank sends a proposal to RBI to re-appoint them for another term.

Recently, a private bank named Federal Bank requested RBI to re-appoint their CEO Shyam Srinivasan for another term. However, the RBI declined this proposal.

The RBI did not give any specific reason for saying no to Srinivasan continuing as the Federal Bank CEO. The RBI usually takes decisions in the interest of safety of the overall banking system.

Now Federal Bank will have to search for a new CEO and send another re-appointment proposal to RBI for approval.

In simple words:

  1. – RBI makes rules for banks to keep people’s money safe
  2. – Banks need RBI nod to re-appoint CEO when their term ends  
  3. – Federal Bank asked to re-appoint their CEO Srinivasan
  4. – But RBI declined the re-appointment proposal 
  5. – Federal Bank now has to find a new CEO candidate

Let me know if you need any clarification or have additional questions!

Source:- livemint

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