Finance Ministry pushes for transparent bank transfer policies

The Finance Ministry has issued guidelines to improve transparency in transfer policies for public sector banks (PSBs). Bank heads have been advised to revise their transfer policies in line with these recommendations, securing board approval.

The revised policies must be implemented by FY 2025-26.

The advisory mandates automating transfer processes. Banks must create online systems to allow employees to indicate location preferences.

This initiative aims to establish a uniform and non-discretionary transfer policy.

The ministry stressed prioritising female employees for nearby postings where feasible. It also urged banks to address transfer-related grievances promptly and considerately.

Officers up to Scale-III should ideally be placed within their linguistic regions to enhance customer service. This placement depends on vacancies and administrative needs.

Additionally, certain areas will be tagged as “Difficult Zones.”

Employees serving in these areas will receive transfer preference after completing their tenure.

Banks have been instructed to complete transfer exercises by June annually, avoiding mid-year transfers unless necessary for promotions or urgent administrative needs.

Clearly defined timelines must be followed to minimise disruptions, the Ministry said.

The Finance Ministry’s recommendations aim to standardise transfer practices across PSBs.

This move is expected to foster fairness, boost employee satisfaction, and enhance operational efficiency.

Banks are required to share copies of their revised transfer policies with the Department of Financial Services promptly.