The government has issued a clarification on queries regarding a directive for nationalised banks to review employee performance, with implications for premature retirement of those deemed underperforming.
In the Lok Sabha, parliamentarians Subbarayan K and Selvaraj V sought clarity on whether such measures were officially mandated and the criteria involved in these evaluations.
The lawmakers asked whether the government has directed the nationalised banks to conduct performance review of their employees and officers and prematurely retire those who are found to be below the norms. In case of any such directions, the government should provide details thereof and the reasons therefore, the MPs said.
In addition, they also sought information on the criteria fixed to decide the performance of the officers and employees, and whether adequate measures are not existed to address the issue of under performance of employees in the bipartite settlements.
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Replying to queries, Minister of State Pankaj Chaudhary said that public sector banks (PSBs) operate as board-governed entities and their employee service conditions are regulated by their respective service regulations and bipartite settlements.
He stated that provisions for performance reviews already exist, and various factors such as service profile, health status, key responsibilities, annual performance reports, vigilance proceedings, and leave records are considered during these evaluations.
The Department of Financial Services has advised PSBs to conduct periodic reviews in line with existing guidelines to enhance administrative efficiency and effectiveness in government functions.
“The Department of Financial Services vide letter No.4/1/22/2015-IR dated 26.09.2024 advised PSBs to conduct periodic review of the performance of their employees as per the extant provisions and the schedule specified in Department of Personnel & Training (DoP&T’s) O.M. No. 25013/03/2017-Estt.A-IV dated 28.08.2020, regarding periodic review of employees in the public interest, with an objective to strengthen the administrative machinery for achieving efficiency, economy and speed in disposal of the government’s functions,” the minister said.
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