With a view to strengthen corporate governance, over a period of time, various guidelines have been issued in matters  7  8 Financial Stability Board (Feb 2013), Thematic Review on Risk Governance, Peer Review Report  BIS central bankers’ speeches  7  relating to the role to be played by the Board, fit and proper criteria for the directors of banks, bifurcation of the post of Chairman and Managing Director (CMD), remuneration etc.
Recognising that ownership of banks by one or few individuals could be detrimental to the public interest, especially, depositors’ interests, it is stipulated that, in India, banks should have a diversified ownership model. To ensure that ownership and control of banks are well diversified, guidelines on ownership and governance in private sector banks were issued by the Reserve Bank in February 2005.