Fin Min asks PSU banks to end disciplinary cases fast Published on Fri, Jun 29, 2012 at 15:30 | Source : Moneycontrol.com
Updated at Fri, Jun 29, 2012 at 22:55
Underscoring the need of fast-paced decision making in all state-owned banks, the finance ministry (FinMin) has issued a circular to all lenders to end the lingering process of disciplinary actions against bank employees. Under the new directives, a banking authority has to institute any inquiry within 15 days while the report has to be finalized in three months with an option of three extensions of one month each.
Earlier, the entire process of completing any disciplinary formalities could stretch from one to four years.
"Disciplinary action is like a hanging sword on your head," an executive director of a large Mumbai-based large public sector bank told moneycontrol.com on condition of anonymity.
"Till the final decision comes out, the charge-sheeted official cannot concentrate on anything. A delay in decision not only affects his career but the concerned bank too suffers due to low productivity leading to his stalled decision making ability. Moreover, any mala fide intention of the accused can hamper bank's operation further in an extended stay," he said.
The way to move for disciplinary actions...
There is an internal process to take disciplinary action in case any bank employee upto grade-four (the level below assistant general manger). Firstly, The supervising official first have to report to the bank's chief vigilance officer (CVO), who will study the case and seek comments to determine the nature of the case (mala fide intention or other). Later, CVO will take the final call with an approval from the bank's chairman and managing director (CMD).
It is then, the banking disciplinary authority to set up an inquiry committee by appointing inquiry officer, presenting officer (on behalf of the bank). The accused employee too can have his representative (not an advocate) to defend his counterpoints.
"The dillydallying process of PSU banks must end. Punish the office, if he is guilty or exonerate him from charges. The FinMin move will no doubt improve productivity of bank officials as the resultant tension out of such cases is going to be short-lived," said a general manager from a mid size Mumbai-based bank.
Hurting a banker's career and growth path as well...
Penalties against disciplinary actions can be of two types: major or minor. In case of minor, the accused is generally left with a caution. However, it can hurt a banker's career in hindsight.
A classic example: an AGM from a New Delhi-based bank was charge-sheeted two years back. Meanwhile, he appeared for an interview for promotion to deputy general manager’s post. But his results remained sealed in absence of final settlement of the pending case. He was just exonerated (from his charges) after two years and later he found, he had passed the interview for DGM's post. Accordingly, the bank has just promoted him with due seniority.
A faster disciplinary process could have saved his embarrassment of two years without delaying promotion of a newly selected candidate.
The secretary of financial services, D K Mittal, as many believe, has to be credited for these guidelines. In the last one year since his appointment, he has brought in some positive changes related to human resources policies and other operational areas.
Government Guidelines on checking delay in completion of Departmental proceedings
F.No. 13/5/2012-Vig
Ministry of Finance
Department of Financial Services
(Vigilance Department)
3rd Floor, Jeeven Deep Building
Parliament Street, New Delhi-110001
Dated: 15thJune, 2012
To,
All CMDs of PSBs, FIs/PSIC,
CVOs of all PSBs, FIs/PSIC
POs DRT/Chairman, DRAT.
Subject: Guidelines for checking delay in completion of Departmental proceedings.
Sir,
The issue of disciplinary proceedings in Public Sector Banks has been debated and it has been found that the disciplinary proceedings in PSBs are not being carried out as per the fixed time schedule. It is, therefore, decided that following framework shouldbe put in placefor all disciplinary cases (Vigilance and non-vigilance) with immediate effect:
1. In case, the disciplinary authority decides to institute an inquiry, it should do sowithin 15 days of receiving statement of defence from the charged officer. The Inquiry Officer and Presenting Officer should also be appointed simultaneously.
2. The inquiry report should be prepared and finalised within three months. Thereafter, if an extensionis required, it shall be given with the approval of the Disciplinary Authority and at most three extensions can be given of one month each.
3. Any extension after six months shall be given with the prior approval of the following:
i. Regional Head – Where DA is under the control of Regional Head.
ii. Zonal Head _ Where DA is under the control of Zonal Head.
iii. ED – Where Zonal Head is DA.
iv. CMD – Where ED is DA.
4. All cases beyond six months,CMD will review them on case to case basis with reasons of delay. On quarterly basis, a detailed statement (case by case) should be put up to the Board.
5. In Vigilance cases beyond six months,a statement on quarterly basis should also be sent to CVO, DFS in addition to putting up to the Board.
This issues with the approval of Secretary(FS).
Yours faithfully,
(J.S. Phaugat)
Under Secretary(Vig.)
1. Copy also to the Secretary, CVC for information.
2. Copy to AS(FS)/ all JSs; DIRs; DSs in DFS.
3. Copy also on Webpage of DFS.
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