It has been decided to advise banks to sensitise their employees to refrain from using political pressure or bringing outside influence in matters of appointments so as to avoid disciplinary action as per rules, Department of Financial Services said in an advisory to heads of all public sector banks.
"Some employees of PSBs have been using political pressure or bringing outside influence in matters of appointments etc to Department of Financial Services," it said.
In this context, banks are advised to frame a fair and transparent system of transfers or postings as already conveyed and also build mechanism to address the grievances of their employees at their level, it said.
However, for genuine reasons, any exception to the rule is made, it should be done by CMD by giving proper reasons, it added.
Last week, Finance Minister Arun Jaitley had advised heads of public sector lenders to take commercial decisions without fear or favour.
"CEOs of the banks and financial institutions (should) take commercial decisions without fear or favour as the government is committed to providing them financial autonomy both in letter and spirit," Jaitley said.
He insisted that the banks should have strong public grievances redressal mechanism in place so that their clients do not have to approach the government to redress their grievances.