RBI Yes’s the Reappointment of R. Gandhi as Non-Executive Director

RBI has given its nod for the reappointment of R. Gandhi as Non-Executive (Additional) Director on the Board of Yes Bank. The move further bolsters the regulatory and governance framework of the bank, reflecting positive impact of RBI’s supervision of private sector banks.

Key Highlights

Who: R. Gandhi, former Deputy Governor, RBI (2014–2017).

What: Reinstated as Non-Executive Director of Yes Bank’s board.

Approval: By the Reserve Bank of India.

Background: Gandhi was inducted to Yes Bank’s Board earlier in March 2020, when RBI came up with a Rescue Package of the bank amidst the financial crisis it was facing.

Significance of the Appointment

Governance Strengthening – Guarantees that there is an experienced regulatory supervision in the operations of Yes Bank.

Building Confidence – Raises depositor and investor confidence in the bank’s long-term sustainability.

Regulations continuity: Yes Bank’s compliance will be led with gandhi’s former role for banking regulations, supervision and financial inclusion policies.

Relevance to the sector of the economy – Is representative of the RBI’s offensive stand to ensure governance reform in India’s private banking space.

About R. Gandhi

Deputy Governor, Reserve Bank of India (2014–2017).

Managed banking regulation, currency circulation and financial inclusion.

A significant figure in the digital payment space and regulation of financial markets.

Member of various RBI committees pertaining to bank supervision, cybersecurity and NBFC regulation.

UPSC Relevance

Prelims:

Explanation: R. Gandhi – ex RBI Deputy Governor.

Non-Executive Director position in private sector banks.

Mains (GS Paper 3 – Economy):

Banking governance reforms in India.

RBI and stabilizing stressed private banks.

Case study: Yes Bank crisis & resurrection.

PYQ Linkage

UPSC Prelims 2021: Questions on Functions of RBI, Regulatory role.

UPSC Mains GS-3: “Examine the role played by RBI towards ensuring financial stability in the country.”

Conclusion

RBI-APPROVED: The reappointment of R. Gandhi to Yes Bank’s board is a vital move to secure governance continuity, regulatory supervision and depositor confidence. But ultimately it underscores an experienced hand that India financial sector reforms need at the helm.