However, when the issue of ‘fit and proper’ status of non-executive directors comes up, the norms only seek to ensure that the candidate should not have come to the adverse notice of the law and regulations or any professional body so that there is no objection from the RBI.
In the case of nonexecutive directors not satisfying the ‘fit and proper’ criteria, there is a prescribed due process to be followed by the RBI to disqualify such directors, which includes opportunities to be heard.