The RBI has capped the tenure of bank CEOs at 15 years for promoter chief executives and 12 years for others. Banks have been asked to comply with the rules by October 2021. However, existing CEOs can continue till the end of their current term.
This is no uncertain term, which means that Uday Kotak, who was reappointed by the RBI for a period of three years starting January 2021, will be serving his last term as Kotak Bank chief. What may come as a blow to the bank is that the obvious successor Dipak Gupta, the current Joint MD will also be out of the running as the RBI norms also restrict whole time director tenures to 15 years as well.