labels: banks & institutions
Finance ministry against Govt nominees in PSBs'' panel news
30 June 2007

New Delhi: The Finance Ministry is against allowing public sector banks (PSBs) to nominate Government nominee directors as members of the management committee despite a request to do so from many such banks.

While both the Government and RBI nominees were earlier nominated as members of the management committee, the Government had in February this year amended the constitution of the management committee of the board in PSBs to specify that the Government and RBI nominees cease to be members of the committee.

However, the Finance Ministry says there is no reason to exclude the RBI nominee director from the management committee given that the central bank has chosen to replace the serving officers with retired officers/non-officials as nominee directors.

Recently a number of PSBs including Punjab & Sind Bank have been seeing board-level tussles and have urged the Finance Ministry to permit the PSBs to nominate Government and RBI nominee directors on the management committee.

Punjab and Sind Bank had recently submitted to the Finance Ministry that it did not have any professionally qualified director on the board and that the removal of Government/RBI nominee from the management committee has proved to be counter-productive.


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Finance ministry against Govt nominees in PSBs'' panel