Nationalised Banks Scheme, 1970 amended (1st Amendment of 2016)

Dated 23rd March, 2016 | Copy of | Notification Sl92 |

In exercise of the powers conferred by section 9 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Central Government, after consultation with the Reserve Bank of India, hereby makes the following scheme further to amend the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, namely:-

(1) (1) This scheme may be called the Nationalised Banks (Management and Miscellaneous Provisions) Amendment Scheme, 2016.

(2) It shall come into force on the date of its publication in the Official Gazette.

(2) In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 (hereinafter referred to as the said Scheme), in clause 2, after sub-clause(b), the following sub-clause shall be inserted, namely:-

(ba) “Bureau” means the Banks Board Bureau established under clause 7-A;

(3) In the said Scheme, in clause 5, in sub-clause(1), after the words “Chairman of the Board”, the following words, figure and letters shall be inserted:

“in the manner as specified in clause 7B.”

(4) In the said Scheme, after clause 6 shall be numbered as sub-clause (1) of clause 6 thereof and after sub-clause (1) as so numbered, the following sub-clause shall be inserted namely:- “(2) The Managing Director shall be appointed in the manner as specified in clause 7B.”

(5) In the said Scheme, after clause 7, the following clauses shall be inserted, namely:-

“7A. Creation of Banks Board Bureau

(1) The Banks Board Bureau (hereafter in this notification referred to as Bureau) shall be established by the Central Government for the purpose of evolving a sound managerial policy for the nationalised banks.

(2) The Board of Directors of the Bureau shall consist of seven members with one Chairman and six members as mentioned in the Table given below.

TABLE

(3) (i) The Chairman shall be a retired official from the banking sector or regulatory institutions or a business person of repute with sufficient knowledge of the financial sector, or a person with at least twenty five years of experience in public administration with experience of banking and financial sectors.

(ii) Out of three part time members of the Board, at least two shall be ex-public or private sector bankers and the rest shall be academicians, former regulators, and business people, former administrators with experience in business management, information technology, human resource, finance and accounting.

(4) All the members except the official members as indicated in sub-clause (3) including Chairman of the Bureau shall be nominated by the Central Government on part time basis and shall be paid a sitting fee of fifty thousand rupee per sitting or as determined by Central Government from time to time.

(5) The Bureau shall appoint a person to act as Secretary of the Bureau Secretariat and the Secretariat shall have its office in Mumbai or such other place as the Central Government may, by notification specify.

(6) The Secretary and staff of the Bureau shall be appointed as per notified recruitment rules by the Department in consultation with the Reserve Bank of India.

(7) The general superintendence, direction and management of the affairs of the Banks Board Bureau shall vest in the Secretary (BBB), who shall exercise all powers and do all acts and things which may be exercised or done by the Bureau in accordance with the Scheme.

7B Manner of Appointment of whole time Director and Chairman and creation of Bureau

A whole time Director referred to in clause (a) of sub-section (3) of section 9 of the Act and the Chairman referred to in clause 5 shall be appointed by the Central Government, after consultation with the Reserve Bank, from out of a panel of names of persons recommended by the Bureau as established under clause 7A.

7C Functions

The Bureau shall perform the following functions, namely:-

(a) to recommend the selection and appointment of Board of Directors in Nationalised Banks (Whole Time Directors and Chairman);

(b) to advise the Central Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Directors of nationalised banks;

(c) to advise the Central Government on the desired management structure of nationalised banks, at the level of Board of Directors and senior management ;

(d) to advise the Central Government on a suitable performance appraisal system for nationalised banks;

(e) to build a data bank containing data relating to the performance of nationalised banks and its officers;

(f) to advise the Central Government on the formulation and enforcement of a code of conduct and ethics for managerial personnel in nationalised banks ;

(g) to advise the Central Government on evolving suitable training and development programs for managerial personnel in nationalised banks.

(h) to help the banks in terms of developing business strategies and capital raising plan and the like; and

(i) any other work assigned by the Government in consultation with Reserve Bank of India.

Sd/-
(Mohammad Mustafa)
Jt. Secy.

S.O.1216(E)
F.No.16/69/2014-BO.I
Issued by:
Ministry of Finance
(Department of Financial Services)
New Delhi

Note : The principal scheme was published vide notification number S.O.3793(E), dated the 16th November, 1970 and subsequently amended vide following notifications:-