PSBs finding it hard to fill IT roles on boards; seek relaxation in RBI rule that mandates tech strategy panels
Reserve Bank of India's guidelines regarding the composition of board-level information technology strategy committees (ITSCs), said people aware of the development.
Banks are increasingly finding it difficult to ensure inclusion of nominee directors with requisite IT expertise and want professional IT consultants advising these committees to be considered towards compliance, they said.
In PSBs, such board-level appointments require government approval. «To find such board-level candidates with the requisite experience is very difficult, and then all other government clearances are required before the final appointment, which also leads to delays,» said one of the bank executives, who did not wish to be identified.
In November 2023, the RBI came out with comprehensive master directions related to IT governance, risk, controls and assurance practices for banks and NBFCs.
The guidelines mandated that from April 1 this year, regulated entities establish a board-level ITSC with a minimum of three directors who are technically competent. «The chairperson of the ITSC shall be an independent director and have substantial IT expertise in managing and guiding IT initiatives,» said the guidelines.
ITSC needs to meet on a quarterly basis and ensure that the lender has put in place processes for assessing and managing IT and cybersecurity risks.
Bankers argue that there is a case for relaxation given that the RBI has stated that only a person with a minimum
