TallyPrime Auditor License (Renewal) (Multi User)   TallyPrime

  TallyPrime Silver Renewal (Single User)   TallyPrime Silver New Licence (Single User)   TallyPrime Gold New Licence (Multi User)   Purchase
Tally on
Open DEMAT Account with in 24 Hrs and start investing now!
Latest Circulars »
Open DEMAT Account in 24 hrs
 Government of India guaranteed term loan extended by SBI to the Government of Sri Lanka- Settlement in INR
 Reserve Bank of India (Financial Statements Presentation and Disclosures) Directions, 2021 Reporting of reverse repos with Reserve Bank on the bank s balance sheet
 Minutes of the Monetary Policy Committee Meeting, May 2 and 4, 2022
 Kisan Credit Card Scheme - Eligibility criteria for farmers engaged in fisheries/ aquaculture
 RBI Bulletin May 2022
 RBI announces decision on six applications received under Guidelines for on tap Licensing of Universal Banks and Small Finance Banks
 Lending by Commercial Banks to NBFCs and Small Finance Banks (SFBs) to NBFC-MFIs, for the purpose of on-lending to priority sectors
 38th Half Yearly Report on Management of Foreign Exchange Reserves: October - March, 2021-22
 RBI imposes Monetary Penalty on Unimoni Financial Services Limited
 Premature redemption under Sovereign Gold Bond Scheme (SGB) - Redemption Price for premature redemption due on May 12, 2022 (Series I of SGB 2017-18)
 Directions u/s 35 A read with section 56 of the Banking Regulation Act, 1949 Sri Guru Raghavendra Sahakara Bank Niyamitha, Bengaluru Extension of Period

Creation of Honorary Designations at Board level in Urban Co-operative Banks
April, 25th 2022


April 21, 2022

The Chairman / Managing Director / Chief Executive Officer
All Primary (Urban) Co-operative Banks

Madam/Dear Sir,

Creation of Honorary Designations at Board level in Urban Co-operative Banks

It has been observed during the course of supervisory reviews that some of the Urban Co-operative Banks (UCBs) have adopted the practice of creating honorary designations (remunerated or otherwise)/conferring titles at Board level, such as Chairman Emeritus, Group Chairman, etc., which are not recognised in applicable statutes or regulations.

2. While such positions/titles may be indicative of certain privileges/rights for the incumbent to access all board materials and participate in board/committee meetings, enforcing liability or obligations on such person may be difficult. Such positions may be seen as creating conflicts of interest as well as creation of a parallel or shadow authority impeding effective and independent functioning of the legally constituted board in the best interest of all its stakeholders.

3. As such, UCBs are directed not to create any honorary positions/titles at Board level or confer such titles that are non-statutory in nature and to eliminate any such existing position/titles within one year from date of this circular.

4. These directions are issued under Section 35A and Section 36(1)(d) of the Banking Regulation Act, 1949 (AACS).

Yours faithfully,

(Shrimohan Yadav)
Chief General Manager

Home | About Us | Terms and Conditions | Contact Us
Copyright 2022 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting