Govt asks banks to take decisions without fear or favour
6 Jan 2015 12:06 AM GMT
Acting swiftly on Prime Minister Narendra Modi’s promise of non-interference in working of public sector banks, Finance Ministry on Monday issued directions asking PSBs to act without “fear or favour” and to ignore “extraneous considerations” in their commercial decisions.
The Ministry also assured the banks and other financial institutions that there will be no government interference in transfer and postings within the organisations. “The banks/FIs should take all commercial decisions in the best interest of the organisation without fear or favour,” the ministry said in communication to chiefs of all state-run banks, FIs and insurance companies. It further said that no decision should be taken due to any “extraneous consideration such as the influence or the position that the borrower is holding”.
The instructions follow soon after Modi said on Saturday at a bankers’ retreat that banks were free to take decisions and they would never get any “call from Prime Minister’s Office (PMO)”.
The Ministry also assured the banks and other financial institutions that there will be no government interference in transfer and postings within the organisations. “The banks/FIs should take all commercial decisions in the best interest of the organisation without fear or favour,” the ministry said in communication to chiefs of all state-run banks, FIs and insurance companies. It further said that no decision should be taken due to any “extraneous consideration such as the influence or the position that the borrower is holding”.
The instructions follow soon after Modi said on Saturday at a bankers’ retreat that banks were free to take decisions and they would never get any “call from Prime Minister’s Office (PMO)”.
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