Government opens up key management position in PSBs for private sector candidates

Core Points - The Cabinet Committee on Appointment has approved changes allowing private sector candidates to apply for Managing Director positions in State Bank of India and 11 public sector banks [1][2] - The new guidelines promote transparency, competition, and merit-based hiring in the banking sector [3] - The first vacancy for MD in SBI will be treated as open to eligible candidates, including those from the private sector [4] Summary by Sections Eligibility Criteria - For private sector candidates, a minimum of 21 years of experience is required, including 15 years in banking and 2 years at the bank board level [3] - Private candidates must have at least 18 years of experience, with 12 years in banking and 3 years at the highest level below the board [6] - Candidates from public sector banks are also eligible to apply for these positions [3][4] Appointment Process - The Financial Services Institutions Bureau (FSIB) will recommend candidates and can engage independent HR agencies for assessing private sector applicants [8] - The traditional Annual Performance Appraisal Reports have been removed from the evaluation process, indicating a shift to a performance-driven assessment model [8] Restrictions - Candidates holding the position of Chief Vigilance Officer (CVO) are not eligible for these appointments [7]