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What is the tenure of Chief Compliance Officer, according to the recent guidelines prescribed by RBI for the appointment of Chief Compliance Officer of a bank?
  • a)
    2 years
  • b)
    3 years
  • c)
    4 years
  • d)
    5 years
  • e)
    6 years
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the tenure of Chief Compliance Officer, according to the rece...
RBI has prescribed the following conditions for the appointment of Chief Compliance Officer for a bank (CCO)
CCO must be a senior bank officer, preferably General Manager, or having an equivalent rank.
The appointed individual should serve at the position for a period of 3 years.
CCO should neither be removed nor transferred before the completion of 3 years other than some exceptional case.
RBI also prescribed the banks to avoid double hatting i.e. CCO should not be given any such responsibility which can be the reason for elements of conflict of interests between two posts held by that individual.
He should also not be appointed a member of any committee which can bring his position as CCO in elements of conflict of interests with his role as a member of that committee.
If he has to be appointed to any such Committee, he can have only an advisory role.
Hence, the correct option is (B).
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What is the tenure of Chief Compliance Officer, according to the recent guidelines prescribed by RBI for the appointment of Chief Compliance Officer of a bank?a)2 yearsb)3 yearsc)4 yearsd)5 yearse)6 yearsCorrect answer is option 'B'. Can you explain this answer?
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