It’s under this category of “artisans” that several of the appointees, described in official files, as “social workers” have been given a relaxation.

Chairmen of several PSU banks contacted by The Sunday Express are categorical in their criticism. Said one who did not wish to be identified: “In the age of cutting-edge competition, banks need highly specialised directors who have excelled in fields such as micro-finance, information technology and rural banking. We hardly need those who have to be accommodated by the ruling party since they have lost elections.”

Complained another: “We have no objections to some politicians being appointed. But they should be politicians with a background in finance and banking and not a single one in my bank meets this qualification.”

When contacted, Amitabh Verma, Joint Secretary in the Department of Banking, said that his department’s role was limited to sending lists of recommendations to the Ministry and issuing notifications for the selected directors. “Nobody has been removed from the boards prior to the completion of his or her tenure,” he said. “All the current non-official directors have been appointed against vacant positions and any relaxation to the new guidelines have the approval of the ACC.”

The appointment of each NOD is cleared by the Appointments Committee of Cabinet (ACC), which means that the Prime Minister’s approval is sought in each case. The procedure is a lengthy one. Whenever a vacancy or a batch of vacancies arises, the Department of Banking prepares a master list of all VIP requests/individual requests and sends it to the Finance Minister. Each appointment file is then routed through the Department of Personnel and Training (DoPT), the Home Ministry and the Cabinet Secretariat before reaching the Prime Minister’s Office (PMO).

... contd.