RBI, cabinet secy to look into PSU bank chiefs’ appointment: Jaitley
The chiefs of state-owned banks are selected by a panel headed by the RBI governor. The Cabinet secretary processes the applications, which are then placed before the Appointments Committee of Cabinet for final approval.business Updated: Aug 15, 2014 01:33 IST
Close on the heels of Syndicate Bank chairman SK Jain’s arrest in an alleged bribery case, finance minister Arun Jaitley has asked the cabinet secretary and the Reserve Bank of India to look into the recent appointments of public sector bank chiefs, following the Central Bureau of Investigation’s (CBI’s) report highlighting discrepancies and irregularities in the process.
“Time has come to be strict with PSU banks... I have urged the cabinet secretary and the RBI governor to examine recent appointments in public sector banks,” Jaitley said on Thursday.
The chiefs of state-owned banks are selected by a panel headed by the RBI governor. The Cabinet secretary processes the applications, which are then placed before the Appointments Committee of Cabinet for final approval.
The CMDs of Canara Bank, Bank of India, Corporation Bank, IDBI Bank, Allahabad Bank have been recently appointed.
Jaitley also said he would start working on goods and services tax and would soon decide on the central sales tax compensation.
Meanwhile, giving in to pressures from the opposition, the Insurance Bill has been refered to the Select Committee of the Rajya Sabha.
Jaitley expressed confidence that the pending bill will be passed in the winter session of Parliament.