Finance Ministry Advocates Transparency in Bank Transfer Policies

The Finance Ministry has issued guidelines to public sector banks to promote transparency in their transfer policies. The advisory urges banks to implement an automated transfer process, prioritize the transfer of women employees close to their residences, and comply with the new policies by 2025-26.

The Finance Ministry has taken significant steps to bring about greater transparency in the transfer policies of public sector banks. On Tuesday, it issued comprehensive guidelines aimed at making these policies more uniform and non-discretionary across the board.

In a recent advisory, the Department of Financial Services has strictly instructed heads of public sector banks to incorporate these changes and seek approval from their respective boards. Immediate action is expected to ensure full compliance with these guidelines by the financial year 2025-26.

The revised policy suggests automating the transfer process, allowing employees to choose location preferences, and placing female employees closer to home whenever possible. Moreover, it mandates that all transfer activities should be completed by June annually to ensure minimal disruption.

(With inputs from agencies.)