FinMin issues advisory to banks to promote transparency in transfer policy

The Finance Ministry on Tuesday issued a host of suggestions with regard to 'Transfer Policy' of public sector banks with an aim to promote greater transparency.

According to an advisory issued to heads of public sector banks (PSBs), the Department of Financial Services asked lenders to incorporate advices suitably in their respective 'Transfer Policy' with the approval of their boards and take immediate action for its implementation and compliance from 2025-26.

"PSBs are also advised to send a copy of the policy, so modified, to this Department, at the earliest," the communication said.

The transfer policy has been reviewed with an aim to promote greater transparency and ensure formulation of a uniform and non-discretionary policy, it said.

 

Some of the changes advised include banks to automate the transfer process and to develop an online process for the same with facilities of giving location preference options to its employees, it said.

"Women employees be transferred as far as possible to nearby places, stations, regions," the letter said, adding that grievances received from employees citing violation of transfer policies be dealt in a considerate manner.

Transfer timelines are clearly defined and strictly adhered to and transfer exercises may be completed before June, every year, it said.

Mid-year transfers may be avoided as far as possible except in case of promotions and administrative exigencies, it added.

"Banks to accommodate officers up to Scale-III in the respective linguistic region in order to ensure seamless customer service to the extent possible, considering various factors including availability of vacancies, administrative exigencies etc," it said.

It further asked banks to designate certain regions as 'Difficult areas' and the employees posted there be given preference for transfer after completion of their tenure.