Who chaired the Reserve Bank of India committee constituted to review the governance of boards of banks in India?

Introduction / Context:
This question comes from Indian banking and regulatory reforms. The Reserve Bank of India has from time to time set up expert committees to review various aspects of the financial system. One such committee focused on governance practices on the boards of banks in India. Knowing the chairperson of this important committee is a common current affairs and banking awareness question.

Given Data / Assumptions:

• The committee was set up by the Reserve Bank of India.
• Its mandate was to review governance of boards of banks.
• We need to identify who chaired this committee.
• The options include well known central bankers and banking professionals.

Concept / Approach:
The committee on governance of boards of banks in India was headed by P J Nayak, a former chairman and managing director of Axis Bank. The committee is often called the P J Nayak Committee after its chair. Raghuram Rajan and Urjit Patel served as Governors or Deputy Governors of the RBI, while Y V Reddy is a former Governor, and Aditya Puri headed HDFC Bank. However, none of them chaired this specific governance committee.

Step-by-Step Solution:
Step 1: Recall major RBI committees and their purposes, particularly those formed around corporate governance in banks. Step 2: Identify that the committee on governance of boards is popularly known as the P J Nayak Committee. Step 3: Connect the name P J Nayak with his role as a former head of Axis Bank and as an external expert engaged by the RBI. Step 4: Recognise that Raghuram Rajan, though an important RBI Governor, chaired different committees and policy groups. Step 5: Note that Urjit Patel is associated with the monetary policy framework, particularly the Urjit Patel Committee on monetary policy. Step 6: Understand that Y V Reddy and Aditya Puri also have other associations but not this particular governance committee. Step 7: Conclude that P J Nayak is the correct answer.

Verification / Alternative check:
Reports and summaries of RBI committees list the full title as the Committee to Review Governance of Boards of Banks in India, chaired by P J Nayak. Its recommendations covered issues such as board structure, ownership, performance evaluation and regulatory oversight. Exam preparation material on banking awareness often refers to it as the P J Nayak Committee, which confirms the identity of the chairperson.

Why Other Options Are Wrong:
Raghuram Rajan, while an influential Governor, is associated with other policy committees and not with this specific governance of boards committee. Urjit Patel chaired the committee on monetary policy, not the one on governance of bank boards. Y V Reddy served as RBI Governor earlier and is not recorded as the chair of this governance committee. Aditya Puri was the long serving managing director of HDFC Bank and participated in various industry bodies but did not chair this RBI committee.

Common Pitfalls:
A typical mistake is to choose the name of a Governor automatically, assuming that all important committees are chaired by the current Governor. However, the RBI often appoints external experts or retired officials to lead specialised committees. It is therefore important to remember specific associations like P J Nayak with governance of bank boards and Urjit Patel with monetary policy reforms.

Final Answer:
The committee to review the governance of boards of banks in India was chaired by P J Nayak.