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Rediff.com  » Business » RBI, Cabinet Secy scrutinising appointments of bank heads

RBI, Cabinet Secy scrutinising appointments of bank heads

August 15, 2014 15:28 IST

Close on the heels of Syndicate Bank Chairman's arrest for alleged graft, Finance Minister Arun Jaitley today said government will deal with PSU lenders sternly and is scrutinising recent appointments of bank heads.

"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," he told reporters.

The CBI had recently written to the Finance Ministry alleging "irregularities" in appointments of chiefs of PSU banks, following which Jaitley called for a closer scrutiny of recent appointments.

Syndicate Bank Chairman and Managing Director (CMD) S K Jain was arrested earlier this month for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of a company.

A panel headed by RBI Governor selects PSU bank chiefs.

Applications are processed by the Cabinet Secretary and placed before the Appointments Committee of Cabinet (ACC) for its final approval.

State-run banks in which CMDs were appointed recently include Canara Bank, Corporation Bank, Bank of India, IDBI Bank, Allahabad Bank and Central Bank of India.

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