Govt Raises Maximum Tenure of PSU Banks’ CEO to 10 Years: The government has agreed to provide the managing director and other full-time directors of the public sector banks a longer term of employment. The original appointment can now be set for up to 5 years, with the option of an additional 5 years.
November 2022 Current Affairs Quiz
About The Amendment:
The amendment would be called Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2022.
More Update:
Earlier, the MD or executive director of a public sector undertaking (PSU) bank was eligible for a maximum tenure of 5 years or 60 years whichever was earlier. This is also applicable for whole-time directors of all Central Public Sector Enterprises (CPSEs). Now, The term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years, as per government notification of 17 November.
What Has Been Said:
A whole-time director, including the managing director, shall devote his whole time to the affairs of the nationalised bank and shall hold office for such initial term not exceeding five years and extendable up to a total period, including the initial term, not exceeding 10 years, as the central government may, after consultation with the Reserve Bank, specify and shall be eligible for re-appointment,” the notification said.
The Importance Of This Move:
The decision of the government would help banks to retain the talent who rise to the ladder of whole-time directors at a very early age of 45-50 years.
Presently, there are many whole-time directors of PSU banks who entered the board at a young age. They would gain from the modification.
