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Bill to repeal Banking Service Commission introduced

A Bill seeking to repeal the Banking Service Commission Act, 1984 was introduced in Lok Sabha on Tuesday as the government felt it is unjustified to keep it in the statute book without setting up the commission.

The Banking Service Commission (Repeal) Bill, 2002, introduced by Minister of State for Finance Balasaheb Vikhe Patil, proposed to repeal the Act in view of the changed scenario in which Banking Service Recruitment Boards have also been closed.

Taking into consideration the decline in manpower recruitment due to consolidation and mechanisation, a proposal was made in the Budget speech for 2001-02 to abolish the BSRBs to provide greater autonomy to bank managements in framing their own recruitment strategy.

As a follow up measure, all the BSRBs have since been closed and banks have also been advised to frame their own recruitment strategy with the approval of their boards to meet their future requirements.

The question of establishing the commission had also been reviewed several times and deferred.

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