News

RBI not considering any proposal to cap top NBFC management tenure: ExclusiveFor Shriram Finance, Executive Vice Chairman Umesh Revankar has served for 14 years on the company's board, and his current tenure comes to an end in October 2029. For Bajaj Finance, Rajeev Jain has served for 11 years on the company's board and his current tenure ends in March 2028.By Latha Venkatesh  March 18, 2026, 8:25:21 AM IST (Published)2 Min ReadThe Reserve Bank of India is not considering any proposal to cap the tenure or implement a force rotation of the top management of non-bank financial companies (NBFCs), sources with knowledge of the matter told CNBC-TV18.

Last week, reports in the media had stated that the central bank is contemplating such a move, which led to a sell-off in shares of non-bank lenders such as Bajaj Finance and Shriram Finance.

Currently, the appointment of NBFC CEOs does not require permission from the RBI, unlike the appointment of bank CEOs, which does. Under the Banking Regulation Act, bank CEO appointments have to pass the RBI's fit & proper test.

In a note last week, brokerage firm Macquarie had stated that Bajaj Finance and Shriram Finance could be the most impacted in case the non-bank lenders end up losing their regulatory arbitrage that they currently enjoy over their private banking peers.

Private sector lenders have a cap of 15 years for Executive Directors on their board, along with an age cap of 70 years. NBFC boards are free to decide the CEO appointment, their tenure, as well as their compensation.

For Shriram Finance, Executive Vice Chairman Umesh Revankar has served for 14 years on the company's board, and his current tenure comes to an end in October 2029. For Bajaj Finance, Rajeev Jain has served for 11 years on the company's board and his current tenure ends in March 2028.

Shares of Bajaj Finance are down 15% in the last one month, while those of Shriram Finance have corrected 7% during the same period.Continue ReadingTagsBajaj Finance sharesRajeev JainRBI NBFC guidelinesshare market todayShriram FinanceUmesh Revankar