The RBI’s move to impose a cap of 10 years on the tenure of promoter CEOs of banks will immediately affect Uday Kotak, who has been heading Kotak Mahindra Bank for the past 17 years, even though his term ends in December 2020.

On Thursday, the central bank had released a discussion paper where it had suggested that the tenure of the whole time director or CEO of a bank, who is a promoter or major shareholder, should not be more than 10 years. The RBI said it would allow banks up to the end of their founder CEO’s current tenure to find a new head or two years from the time the new guidelines are implemented, whichever is later.

“Among the leading private banks, we believe Kotak Bank may be affected more as Uday Kotak is the promoter and the CEO/MD. He has been CEO/MD since inception and his current term expires in December 2020. So, if the norms are implemented (and notified by September 2020) then his term may expire on September 2022 or April 2023,” a note from Jefferies said.