Finance Ministry releases Advisory to Banks to Increase Transparency in Transfer Policies

The Finance Ministry has issued many proposals to improve transparency in public sector banks’ transfer policies. These proposals were discussed with the heads of these banks, and they were encouraged to incorporate the advise into their transfer policies with board approval. Implementation and compliance are planned to begin with the financial year 2025-26.

Banks have been advised to automate their transfer processes and provide an online system for employees to specify their preferred location. This move is intended to establish a uniform and non-discretionary policy. The Department of Financial Services has demanded that banks quickly deliver a copy of their new policies.

The advisory emphasizes the importance of moving female employees to nearby locations whenever possible. It further emphasizes that grievances about transfer policy violations should be handled carefully. Banks are encouraged to complete transfer exercises by June of each year, avoiding mid-year transfers unless they are required for promotions or administrative purposes.

Officers up to Scale-III should be accommodated in their respective linguistic regions to guarantee efficient customer service. This consideration is dependent on factors such as vacancy availability and administrative requirements. Furthermore, selected regions will be designated as Difficult Regions, with employees receiving transfer priority after completing their employment.

The communication highlights the importance of well defined and rigorously adhered-to transfer timelines. The goal is to prevent unnecessary disruptions and guarantee a smooth transition for employees. By following these guidelines, banks can promote a more transparent and efficient transfer process.

These changes are part of a broader effort to standardize operations among public-sector banks, improving fairness and uniformity in employee transfers. The initiative of Finance Ministry aims to address existing difficulties while improving overall operating efficiency in the banking sector.