Daijiworld Media Network - New Delhi
New Delhi, Dec 28: The Finance ministry has issued fresh directions to public sector banks and financial institutions, including insurance companies, mandating the timely reporting of all vigilance-related matters involving whole-time Directors on their boards.
In an order issued by the Department of Financial Services (DFS), the ministry notified that failure to disclose significant information relevant to appointments, promotions, board-level postings, or placement of whole-time Directors is a serious lapse. It stressed that strict adherence to vigilance reporting norms is expected from all public sector undertakings (PSUs).
The directive follows multiple instances where critical information about board-level appointees was not shared in a timely manner. According to the DFS, adverse inputs such as private complaints, court observations, or references from the Central Bureau of Investigation (CBI) and other law enforcement agencies were often reported only when vigilance clearance was specifically sought at the time of appointment or promotion.
The advisory noted that in some cases, important details concerning whole-time Directors were omitted from vigilance clearance formats on the grounds that no specific column existed for such disclosures.
To address these gaps, the DFS has instructed public sector banks and financial institutions to immediately report all adverse inputs related to board-level officials, even if the alleged issues pertain to roles held outside the board.
The ministry has also called for comprehensive vigilance disclosures, which must include court or tribunal observations, findings of internal committees, serious audit objections, and communications from any government department or investigative agency.
Chief Vigilance Officers (CVOs) have been directed to ensure that vigilance clearances reflect the most current and accurate status as of the date of issuance, with explicit instructions that no material information should be withheld.
The move comes in the backdrop of a recent case where the government had to withdraw its decision to promote Union Bank of India Executive Director Pankaj Dwivedi to the post of General Manager at Punjab & Sind Bank due to the absence of vigilance clearance. The matter was linked to a case in the Delhi High Court alleging that his appointment as Executive Director violated prescribed norms.
The latest directive aims to strengthen transparency and accountability in senior-level appointments across public sector financial institutions.