From now on, no government secretary or officials of equivalent rank will be allowed to hold directorship of state-owned banks .
The financial division of the finance ministry issued a guideline to this end on Thursday evening.
According to the guideline, “Any incumbent government secretary or official of equivalent grade shall not be considered for appointment to the post of chairman or director unless it is specified in any law/ordinance/order/guidelines in effect for the time being.”
According to the guideline, an approval will have to be taken from the prime minister in appointing and reappointing chairman in all state-owned banks and financial institutions.
In case of the director, permission will have to be taken from the minister concerned, it added.
