Financial Daily from THE HINDU group of publications
Wednesday, Jan 23, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jan 23, 2002 |
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Money & Banking
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Human Resources Government - Policy Cabinet nod for repeal of banking service Act -- Full say for banks in recruitment Our Bureau
NEW DELHI, Jan. 22 THE Cabinet on Tuesday decided to repeal the Banking Service Commission Act, 1984 for providing greater autonomy to banks, particularly in recruitments, an official spokesperson said. A Bill would be introduced in the ensuing Parliament session for this purpose. "Keeping in view the need for providing greater autonomy to bank managements, it was felt that all future recruitment may be done by the banks themselves," the Government said about the reason to repeal the Act. According to the Act, a banking service commission was to be set up for conducting examinations for the officers' cadre of public sector banks. However, it was later felt that in the interest of greater autonomy to banks and a decentralisation of recruitment, the proposal for setting up of the commission might be kept in abeyance. "The modified system may help in reducing the regional imbalances and providing flexibility to the banks in conducting examinations as per their requirements. Since any centralised system will negate the above objectives, it is necessary that the Act be repealed," the spokesperson said. The Union Cabinet also approved relaxation in criteria for releasing Central loan assistance under accelerated irrigation benefits programme for ushering in economic reforms in the irrigation sector. The States, which agreed to undertake reforms by rationalising their water rates over a period of five years, would be given the Central loan assistance on liberal terms, the spokesperson said. Under the liberalised terms, the general category reforming States will now be eligible for the assistance in the ratio of four is to one (Centre is to State) against the current norm of two is to one. Similarly, the special category States will be eligible for the assistance in the ratio of one is to nil against the current ratio of three is to one. The Cabinet also approved a fast track programme for irrigation projects so as to give a fillip in the economy. Under this programme, State Governments will be provided 100 per cent loan assistance by the Centre only for works without establishing component so that they can complete identified irrigation projects within one year. About 20-25 projects are expected to benefit under the fast track programme and a sum of Rs 500 crore has been earmarked in financial year 2001-02 for this purpose. The Cabinet also ratified an extradition treaty between India and Poland as well as India and Malaysia, as part of its efforts to combat international terrorism, the spokesperson said. It also gave ex-post-facto approval for signing a treaty between India and US on mutual legal assistance in criminal matters.
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