Kumar Birla quits RBI board to avoid conflict of interest

New Delhi, July 24: Weeks after his group firm applied for a bank

from the Reserve Bank of India (RBI), Kumar Mangalam Birla has resigned from the apex bank's board to avoid any conflict of interest.

"I have resigned from RBI Board 4-5 days ago. So, there is no conflict of interest now," Birla said in Delhi on Tuesday.

He was nominated as a member of the Directors of the Central Board of the RBI in 2006.

His group firm Aditya Birla Nuvo is among 26 entities that have applied for a bank licence. The last date for applying for a bank licence expired on July 1.

Birla continued to be on the RBI board even after his group firm applied for a licence.

CPI had recently raised objections, saying there is conflict of interest as he is a member of the RBI board.

RBI Governor D Subbarao had responded by saying the apex bank would look into the issue.

The RBI is expected to grant new licences by March next year.

India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.

PTI