In this direction, 'Fit and Proper' criteria for CEOs is also being formulated for implementation through the state governments. Market discipline is gradually being increased through rigorous disclosure norms and initiatives like public disclosure of penal action taken against a bank by the RBI.
Also in case of gross violation of RBI guidelines / directives where complicity of a director or of the Board is noticed, Reserve Bank of India approaches the Registrar of Cooperatives of the concerned state for removing the director or even for superceding the entire Board, depending upon the nature of violation.