Fin Min to improve effectiveness of PSB directors

The Finance Ministry has introduced a code of conduct and peer review for non-official directors of public sector banks (PSBs) to improve their effectiveness, according to The Businessline.

The PSBs will now file performance reports of all the non-official directors to the Finance Ministry. The reports will have professional and ethical conduct and contribution to the board.

The measure is being taken to improve corporate governance in banks.

The Non-Official Directors are the ones who are nominated by the government, as promoter, at PSBs.

The PSBs are also asked to familiarise Non-Official Directors from various topics such as cybersecurity, use of technology in banking, macroeconomic and fiscal policy, credit appraisal, risk management, and treasury operations.

The code of conducts with well-defined 'dos' and 'don'ts' for Non-Official Directors have been issued by the Finance Ministry.