The Finance Ministry has introduced a Code of Conduct for non-official directors of public sector banks. Under the new rules, the PSBs board will also have to send an annual performance report that rates a director based on professional and ethical conduct, and contribution to the board.
The performance evaluation by peers will measure the director on various parameters including avoidance of direct or indirect conflict of interest, acting according to rules in the best interest of the bank, avoiding any gain to self or associates and maintaining confidentiality.
The above measures taken by the department of financial services at the finance ministry aims to improve corporate governance in banks.
Static/Current Takeaways Important For IBPS RRB PO Mains:
- Union Finance Minister: Nirmala Sitharaman.
Source: The Economic Times