Govt scraps selection process for PSU Bank Chiefs

The current selection process for the FY14 -15 stands cancelled. So the posts of eight CMDs and fourteen EDs remain vacant with immediate effect.

The government has scrapped the selection process to select the heads for PSU banks.

This has come in the wake of many bribes-for-loan scandals at state-run banks.

The current selection process for the FY14 -15 stands cancelled. So the posts of eight chairman and managing directors (CMDs)  and fourteen executive directors (EDs) remain vacant with immediate effect.

In the new selection process the RBI governor or his nominees (at least of a rank of deputy governor of RBI) will be part of the selection process.

The government is committed to filling up the all these vacancies expeditiously but the exact details of the selection process are not yet known and will be notified shortly.

This decision was as per the committee recommendation which had been constituted to relook at the entire matter and the RBI governor was also part of it.

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