Private sector lender IDFC Bank has appointed former Reserve Bank of India deputy governor Anand Sinha on its board as an independent director.
Mr. Sinha, who will replace former Comptroller and Auditor General (CAG) Vinod Rai, was appointed with effect from August 1.
Mr Rai was appointed as the Chairman of the Banks Board Bureau. Hence to avoid any potential conflict of interest, he has resigned as a Director of IDFC Bank.
Mr. Rai was the nominee director representing IDFC on the board of IDFC Bank. IDFC had received approval from RBI to start operations as a universal bank in April 2014, following which the erstwhile infrastructure financier’s loans were transferred to IDFC Bank.
IDFC Bank started operations from October 2015. Mr. Rai was appointed as BBB chairman in February.
He joined RBI in July 1976 and was appointed as Deputy Governor in January 2011. Mr. Sinha played a key role in the universal bank licencing process, which was completed in April 2014.
Banking regulations
As Deputy Governor, Mr. Sinha looked after several departments including banking regulations and superannuated on January 18, 2014, though he was acting as an adviser to RBI, on the issue of new bank licence, till April 2014 — including the formation of the draft and final guidelines.
Apart from IDFC, Bandhan Financial received RBI’s approval to start a universal bank in 2014.
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