Mumbai: Kumar Mangalam Birla, chairman of Aditya Birla Group, has resigned from the board of the Reserve Bank of India (RBI), according to a person familiar with the development.
The government has accepted Birla’s resignation, according to an RBI spokesperson.
Early in July, RBI governor D. Subbarao had said that the banking regulator wants to consult the government about any possible conflict of interest in Aditya Birla Nuvo Ltd seeking a banking licence and Aditya Birla Group chairman Kumar Mangalam Birla being on the board of the central bank.
Aditya Birla Nuvo is one among the 26 applicants for banking permit.
“We’ll have to take a view on that,” Subbarao said after the quarterly meeting of the central bank’s board on Thursday in Chennai on 5 July.
Aditya Birla Nuvo has maintained that there was no conflict of interest.