The Union Finance Ministry on 27 October 2014 cancelled the current selection process for the posts of Chairman and Managing Director (CMD) and Executive Director (ED) of Public Sector Banks (PSBs).
Government took the decision of scrapping the process after receiving the report of a committee that was constituted to examine the selection process adopted for the appointment of CMDs and EDs of PSBs for the year 2014 -15. The committee consisted of Secretary Expenditure, Secretary School Education and the RBI Governor.
The government also decided to start the process of selection freshly so as to fill the existing vacancies in PSBs where-in the RBI Governor or his nominee of the rank of the Deputy Governor should be part of the selection process.
Besides, the Ministry also decided to finalise a new process for selection of CMDs and EDs for all future vacancies.
The government decision comes after the CBI found irregularities in the PSU chief selection process after Syndicate Bank CMD SK Jain's arrest in August 2014 over graft charges.
At present eight posts of CMDs and fourteen posts of EDs are lying vacant in the PSBs. These include Bank of Baroda, Canara bank, Indian Overseas Bank, Oriental Bank of Commerce, Syndicate Bank and United Bank of India.
When: 27 October 2014