Centre scraps 9 names listed by UPA to head PSU banks

Amid allegations of widespread irregularities, the government on Monday scrapped two panels of candidates for top jobs in public sector banks that was finalized towards the end of UPA regime. It will now launch a fresh exercise to appoint eight bank chiefs (nine candidates had been shortlisted, with one person earmarked against a future vacancy) and 14 executive directors. 

Several top state-run banks including Bank of Baroda and Canara Bank have been without a full-time chairman and managing director and Punjab National Bank joined the list on Monday with KR Kamath's term coming to an end. Sources said that the appointments are expected to be finalized over the next few weeks. 

New rule to pick PSU bank heads

The government today scrapped the selection process of public sector bank heads after a high-level panel found irregularities in the exercise by the previous UPA government.

The probe into the selections to banks such as Bank of Baroda and Canara Bank was initiated following the arrest and termination of the tenure of Syndicate Bank chairman S.K. Jain in August for alleged graft.

A finance ministry statement said the future vacancies of chairman and managing directors (CMDs) as well as executive directors of PSU banks would now be filled through a new selection process.

RBI asks banks to partially freeze KYC non-compliant accounts

Customers, who have not complied with KYC requirements despite repeated reminders, may face trouble with RBI today asking banks to partially freeze and subsequently close such accounts.

"As regards non-compliance of KYC ( Know Your Customer) requirements by the customers despite repeated reminders by banks, it has been decided that banks should impose 'partial freezing' on such KYC non-compliant in a phased manner," the Reserve Bank said in a notification.

RBI revises rules on reporting of bad loans

The Reserve Bank of India issued new guidelines on Tuesday on the reporting of bad debt and the working of the Joint Lenders' Forum (JLF).

It said banks will be permitted to report their SMA-2 (Special Mention Accounts) and JLF formations on a weekly basis, at the close of business on every Friday. If a holiday, banks will have to report the details on the next working day.

HAPPY DIWALI