Government Amends Procedure For Appointment of Non Official Directors (Nods) on The Boards of Public Sector Banks, Insurance Companies and Financial Institutions to Professionalise the Boards

The Government of India has amended the procedure for appointment of Non Official Directors (NoDs) on the Boards of Public Sector Banks (PSBs), Insurance Companies and Financial Institutions with a view to professionalise the Boards of these banks and further provide required skill sets to improve the quality of deliberations on the Boards of these banks leading to efficient management of these banks and further leading to better profitability ratios.

 Salient features of the revamped procedure for appointment of NoDs are as follows:-

 A designated Web Portal ( http://financialservices.gov.in/nod) has been created where interested persons can apply online with all the relevant details. The person will have access to status of his application.

• There would be one High Level Search Committee which will go through the available applications and would recommend names to the Government for approval.
• The applicant should have at least a graduation degree, should be less than 67 years of age and have 20 years of work experience, in following categories:
• Persons of eminence with special academic training or practical experience in the fields of agriculture, rural economy, banking, cooperation, economics, business management, human resources, finance, corporate law, Risk Management, Industry and IT will ordinarily be considered.
  • Retired Senior Government Officials, Academicians, Directors of premier Management, Banking Institutes, professors with 20 years experience
  • would be considered. Chartered Accountants with 20 years experience would also be considered.
  • NoDs could be appointed for maximum six years or two terms.