GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES
UNSTARRED QUESTION NO 237
TO BE ANSWERED ON 20.11.2007
Boards of Public Sector Banks.
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of FINANCE be pleased to state:-
(a) whether his Ministry, while making appointments of non-official Directors on the Boards of the Public Sector Banks or other committees such as Investment Commission under its jurisdiction oversee that such appointees do not misuse their position for their personal interests;
(b) if so, whether any guidelines/instructions had been issued to prevent conflict of interest;
(c) if so, the details thereof; and
(d) if not, the reasons therefore?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PAWAN KUMAR BANSAL)
(a) to (d) : While making appointments of non-official Directors on the Boards of the Public Sector Banks, every endeavour is made to select persons having special knowledge or practical experience in agriculture and rural economy, banking, cooperation, economics, finance, law, small scale industry or in any other matter, the special knowledge of and practical experience of which would, in the opinion of the Government, be useful for the bank or represent the interest of the depositors, farmers, workers and artisans. A person, once appointed as part time non official director, is required to sign a deed of covenant to discharge his responsibilities to the best of abilities, individually and collectively. There is no non-official director in the Investment Commission. The terms of reference of Investment Commission are such that they do not lend any scope for misuse.