(a) whether the Government have examined the A.S. Ganguly report on
supervisory role in private banks;
(b) if so, the details thereof;
(c) whether the Government propose to enact legislation to implement
the recommendations of the Committee; and
(d) if so, the details thereof ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANT G. GEETE)
(a) to (d) The report of consultative group of Directors of Banks and
Financial Institutions headed by Dr A S Ganguly set up by Reserve Bank
of India to review supervisory roles of Boards of banks is under
consideration of the Government. The major recommendations of the
Group are as under:
(i) appointment of one more whole time director on the Boards of
large-sized nationalised banks,
(ii) establishment of appropriate due diligence procedures for
appointment of directors on the boards of private sector banks,
(iii) setting up of Nomination Committees of Boards of banks to
recommend appointment of independent/non-executive directors,
(iv) building and creation of a pool of professional and talented people
for board level appointments in banks and also maintenance of the
data for the purpose by Reserve Bank of India etc.,
(v) besides above, the recommendations also focus on the role and
responsibilities of independent/non-executive directors, their
training & remuneration, commonality of directors of banks and
NBFCs, information flow to/from the Board, Composition of
Financial Committees of the Boards, etc