The Reserve Bank of India on Tuesday fixed 70 years as the maximum age for a person to hold office of MD & CEO and other Whole Time Director (WTD) in a private bank as stipulated in the new Companies Act.
"It has been decided that the upper age limit for Managing Director & Chief Executive Officers (MD & CEO) and other Whole Time Directors (WTDs) of banks in the private sector should be 70 years," the Reserve Bank of India (RBI) said in a notification.
This means beyond 70 years of age nobody "should continue" in the posts in a private bank, it said.
However, within the overall limit of 70 years, individual bank's Boards are free to prescribe a lower retirement age for the WTDs, including the MD & CEO, as an internal policy.
The Companies Act, 2013 [Section 196(3)] prescribe that 'no company shall appoint or continue the employment of any person as Managing Director, Whole Time Director or Manager who is below the age of 21 years or has attained the age of 70 years'.
