This refers to Prudential Regulation G-1 B for Corporate/Commercial
Banking, regarding "Responsibilities of the Board
of Directors". Para 3 of PR G-1 B provides that all
the members of the Board should undertake and fulfill
their duties and responsibilities keeping in view their
legal obligations under all the applicable laws and regulations.
2.
The aforesaid Regulation envisages that the directors
are well-acquainted with all applicable laws and regulations.
In order to facilitate the Board members, it has been
decided that the Company Secretary of the Banks/DFIs shall
provide to all Board members the extracts from the relevant
laws, rules and regulations regarding their powers, duties
and responsibilities and keep them updated of any revisions/amendments
therein.
3.
The above instructions shall come into force with immediate
effect. The Banks/DFIs are advised to communicate the
contents of this circular to all their Board members.
4.
Please acknowledge receipt.