New Delhi: The maximum tenure for Chairman & Managing Directors (CMDs) and Managing Directors (MDs) of public sector banks was recently increased to 10 years by the government. This comes as a part of the Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022.
CMDs and MDs of public sector undertakings (PSUs) could previously serve for either five years or until reaching 60 years of age, whichever came first. Now, they can serve for up to 10 years, aligning with the retirement age of 60. This change is expected to help banks preserve talented leaders who often rise to these positions in their mid-forties to early fifties.
The extension also covers full-time directors of all Central Public Sector Enterprises (CPSEs). However, the central government will continue to hold the authority to end the tenure of a full-time director, including the MD, with a three-month notice period.
