The chairmen and chief executive officers of private sector banks won't any longer have to knock on the Reserve Bank of India's doors for clearance every time they want to go abroad.
Till now, private banks were required to keep the concerned regional office of the RBI informed of visits abroad by their chairman and chief executive officer and make substitute arrangements during the period of such visits.
Even though most private banks do not have any overseas office, the CEOs go abroad frequently for meeting investors and holding roadshows.
The central bank recently revisited the clause pertaining to overseas visits after it received representations from various private banks.
The banks' contention was that as some of their CEOs go abroad almost every fortnight, it is not feasible to seek the RBI's permission every time.
The central bank has dispensed with the clause. But if the executive comes to know of any issue that has a regulatory or supervisory bearing (both for the host and the home country) during his visit to overseas branches, the executive must inform the concerned regional office of the RBI.
Public sector bank chiefs, however, will continue to report to the central bank and the union finance ministry every time they make a trip abroad.
While a 10-day trip abroad by them can be cleared by the board, any tour beyond 10 days requires the RBI's as well as the ministry's green signal. These bankers are required to submit a report on their visit abroad both to the RBI and the ministry.
