RBI directs banks to appoint CFOs, CTOs

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In sync with the rapid changes in the banking sector, the Reserve Bank of India (RBI) has urged the banks to appoint qualified bankers to head the critical finance and technology functions.

The central bank has also finalised a minimum eligibility criterion for the chief financial officers (CFOs) and chief technology officers (CTOs).

“Rapid innovations in banking and technology call for better risk governance in the areas of finance and technology,” the RBI said in a notification. “A CFO and CTO in banks’ management structure would play a crucial role in strengthening and sustaining the banks’ risk governance framework.”

“CTO should be an engineering graduate, or hold a Masters in Computer Applications (MCA) or equivalent qualification with a 15-year experience in banking information technology-related projects,” it added.

“The candidate’s experience should include work on IT policy and planning, financial networks and applications, financial information systems, cyber security technologies and payment technologies,” it said.

This experience mentioned for selection of CTOs and CFOs by RBI includes five years at the senior management level, said the notification which comes amid heightened concerns on cybersecurity following the discovery of ransomware ‘Wannacry’.

For the CFO’s post, the RBI recommended qualification as a Chartered Accountant and an experience of 15 years. The experience should include overseeing financial operations, preferably accounting and taxation matters, in banks or large corporates/state-run enterprises/financial institutions.

Ten years of this should be with banks or financial institutions, including five years at a senior management level, it said. The apex bank advised banks to stipulate minimum requirements while inviting applications for the posts of CFO and CTO.

 

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