Section 29: Appointment of Chief Executive and Terms and Conditions of Service

1) The Board of Directors shall, subject to this Act, Memorandum of Association and Articles of Association, appoint one Chief Executive for management of the bank or financial institution.

2) The tenure of office of the Chief Executive shall be four years maximum, and he/she may be re-appointed again for the next term of office.

3) The provision referred to in sub-section (2) shall come into force after the commencement of this Act.

4) Notwithstanding anything contained in sub-section (2), the Board of Directors may remove the Chief Executive from his/her office at any time in case his/her work performance has not been satisfactory.

Provided that before removing from the office, reasonable opportunity shall have to be provided to him/her to submit clarification.

5) While appointing a Chief Executive, the persons having possessed the following qualifications and experience shall be appointed, and information thereof shall be furnished to the Rastra Bank within even days from the date of appointment:

(a) Having attained a Master’s degree in management, banking, finance, monetary, economics, commerce, bookkeeping, statistics, accounts, mathematics, business administration or law,

(b) Having work experience of at least ten years as an officer level or above in the banking or finance sector, government agency, corporate body, university or an international institution or organisation to carry on similar works after having attained a bachelor’s degree in chartered accountancy or management, banking, finance, monetary, economics, commerce, bookkeeping, statistics, account, mathematics, business administration or law,

Provided that in the case of the Chief Executive of a Class “D” financial institution, one shall have to possess the academic qualifications and work experience as specified by the Rastra Bank.

(c) Having completed the criteria as prescribed by the Rastra Bank with regard to appointment of the Chief Executive,

(d) Not been disqualified pursuant to Sub-Section (1) of Section 18.

Provided that disqualifications as mentioned in Part (i) and (n) of sub-section (1) of Section 18 shall not apply with regard to the Chief Executive.

6) In case the Chief Executive appointed pursuant to sub-section (1) has not been found qualified according to this Act, the Rastra Bank may issue an order to the concerned bank or financial institution to remove such Chief Executive and to appoint another person being qualified to get appointed in the post of Chief Executive.

7) Remuneration and terms and conditions of service and other facilities of the Chief Executive shall be as specified by the Board of Directors, and the terms and conditions of service and facilities shall have to be fixed at the time of his/her appointment.

8) The Chief Executive of any bank or financial institution may not be appointed as the Chief Executive, official, employee or in other positions in any other business organisation.

Provided that the provision of this Sub-Section shall not be deemed to have made obstruction to be the Director of an Infrastructure Development Bank in which the bank or financial institution has made an investment in such development bank.