New Delhi, Jan. 16: During Prime Minister Narendra Modi’s discussions with the Chief Executives of public Sector Banks and Financial Institutions (PSBs and FIs) at the “Retreat for Banks and Financial Institutions” called “Gyan Sangam” earlier this month at Pune it was conveyed “from the highest level” in categorical terms that the Government will not interfere in the working of the banks and FIs.
The Government of India has proceeded further on this assurance and conveyed to the PSBs, FIs and the concerned agencies that they should take all commercial decisions objectively, on the basis of facts of the case and in the best interest of the organisation. Decisions should not be taken out of extraneous considerations such as influence or position of the borrower.
The Banks and FIs have also been been told to strictly follow well laid out transfer and posting rules. Even recommendations by anyone, including anybody from the Ministry of Finance shuld not be enetrtained and if for any genuine reason, abny exception to the rule is made, it should be done only by the CMD by giving proper reasons.
While assuring non-interference and giving freedom and autonomy to banks and FIs in matters relating to commercial decisions, transfers and postings, the Department of Financial Services under the Ministry of Finance has also drawn a line and conveyed “if any complaint comes to the department from anybody informing that exceptions were made in certain cases without any objective basis, and in order ot favour somebody the person taking such decision will be accountable