The
Presidents/Chief Executives
All Banks/ DFIs
Dear
Sirs/Madam,
MINUTES
OF THE BOARD OF DIRECTORS’ MEETINGS
In terms of Para
2(vi) of Prudential Regulation No.XXIX regarding “Responsibilities
of Board of Directors” issued vide BSD Circular No.15
dated the 13th June, 2002, the banks/DFIs are,
interalia, required to record detailed minutes of the meetings
of their Board of Directors so that the deliberations and
contributions of the Board can be properly evaluated by
the external auditors and the regulators.
It has been observed that some of the banks/DFIs
are not meticulously observing the above requirement of
recording detailed minutes of the meetings of the Board
of Directors. In the absence of detailed minutes, the role
played by the Board in policy formulation and its contribution
in institutional strengthening cannot be properly evaluated.
In order to improve transparency in decision making and
to form a judgment on the quality of the Board’s work, it
is hereby reemphasized that the proceedings of the meetings
of the Board of Directors of banks/DFIs should invariably
be recorded in detail so as to reflect all significant deliberations
made and decisions taken during the meetings.
Please acknowledge receipt.