Please refer to the Regulation G-1 (A) of the Prudential Regulations for Corporate/Commercial Banking as amended from time to time on the above subject.

2. The effective and sound corporate governance is critical for successful functioning of banks/DFIs. In order to further strengthen the regulatory framework on corporate governance, it has been decided to amend the existing FPT criteria for appointment of the members of Board of Directors, Chief Executive Officer (CEO) and Key Executives of a bank / DFI. Furthermore, the scope of FPT has been enhanced to include sponsors & strategic investors in addition to Directors, CEOs & Key Executives of all banks/DFIs.

3. The banks/DFIs shall ensure that in future, all fresh appointments and/or renewals of the members of Board of Directors, CEO and Key Executives are made strictly in accordance with the enclosed FPT requirements. The above instructions supersede the BPRD Circular No. 12 dated 2nd June, 2000, BPD Circular No. 11 dated 5th April, 2003 and BPD Circular No. 13 dated 17th May, 2004.

4. Please acknowledge receipt.

Encl: As above