Explain the revised guidelines of RBI on appointment of Whole-Time Director(s) in Banks.

Banks are advised by RBI to ensure the presence of at least two Whole Time Directors (WTDs), including the MD&CEO, on their Boards. The number of WTDs shall be decided by the Board of the bank by taking into account factors such as the size of operations, business complexity, and other relevant aspects. In compliance with RBI instructions, banks that currently do not meet the minimum requirement as mentioned above are to submit their proposals for the appointment of WTD(s) under Section 35B(1)(b) of the Banking Regulation Act, 1949, within a period of four months from the date of issuance of RBI circular in this regard. Those banks which do not already have the enabling provisions regarding the appointment of WTDs in their Articles of Association may first seek necessary approvals under Section 35B(1)(a) of the Act, expeditiously, so as to be in a position to comply with the requirements under RBI instructions. While ensuring compliance with the above RBI instructions, careful consideration shall also be given to meet the requirements under other applicable statutory /regulatory provisions.