What changed
RBI introduced a uniform application form (Annex I) and an indicative document checklist (Annex II) for ARC appointments/reappointments of directors, MDs, or CEOs. Previously, no standardized format existed. The 90-day advance submission requirement remains unchanged from earlier guidelines.
What it means for you
ARCs must now follow a standardized process, reducing ambiguity in approval applications. This streamlines RBI's review but requires ARCs to maintain updated candidate documentation. Non-compliance could delay appointments, impacting board continuity and resolution timelines.
What you must do
- Use the new Annex I form for all director/MD/CEO appointment or reappointment applications.
- Compile the documents listed in Annex II before submitting to the Department of Regulation.
- Submit complete applications at least 90 days before the vacancy arises or the proposed appointment date.
- Ensure the application is signed and sent to the specified RBI address or email.
Who it affects
Asset Reconstruction Companies (ARCs), Directors, Managing Directors, and CEOs of ARCs, RBI's Department of Regulation
What is the deadline for submitting the application?
Applications must be submitted at least 90 days before the vacancy arises or the proposed date of appointment or re-appointment.
Where should ARCs send the application?
The application, along with Annex I and Annex II documents, should be sent to the Department of Regulation, Central Office, Mumbai, at the address or email provided in the circular.
Does this circular change the requirement for prior RBI approval?
No, the requirement for prior approval remains unchanged. This circular only standardizes the application format and document checklist.