New Delhi: The Central Vigilance Commission (CVC) has red-flagged appointment process of some senior level officers in public sector banks (PSBs) and sought clarification from the Finance Ministry.
The CVC was approached for vigilance clearance against some of the names shortlisted for appointments in the banks. However, certain alleged anomalies were found in the selection process, official sources said.
A reference has been sent to the Finance Ministry seeking clarification on the matter, they said.
The names were shortlisted during the tenure of the last UPA government. The Commission has denied vigilance clearance to these recommended persons, the sources said.
The Commission has, prima facie, claimed to have found instances where more marks were given to some of the candidates in their interview allegedly without any basis to secure their entry into the banks, they said.
The CVC, in its communique to the Ministry, has cited recent media reports about alleged irregularities in top level appointments in the public sector banks.
RBI Governor is the head of the board that selects state-run bank chiefs. The Appointments Committee of Cabinet approves Board level appointments in the public sector undertakings including nationalised banks.
Finance Minister Arun Jaitley has recently said that government was taking steps to professionalise the management and help them strengthen their risk management system.
Earlier last month, Syndicate Bank Chairman and Managing Director (CMD) S K Jain was arrested by CBI for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of Bhushan Steel and Prakash Industries.
Besides, some officials of Oriental Bank of Commerce and Dena Bank were suspected of misappropriating funds worth Rs 436 crore from their fixed deposit customers. The government has initiated a forensic audit in the alleged scam.