Govt keen to retain its say on picking PSB independent directors

The central government is not in favour of allowing public sector banks (PSBs) to appoint their own independent directors, said a senior official, arguing that retaining control is essential to ensure consistent oversight and to effectively implement financial inclusion schemes. 

During the PSB Manthan earlier this month, some experts and bankers had suggested that the power to appoint independent directors should rest with the boards of PSBs to enhance accountability. 

“This is not feasible, and the government is not in favour of it. As the promoter, we are required to make such appointments, similar