In a significant development, the Finance Ministry has written to Public Sector Banks (PSBs) to reform their transfer policy by incorporating a series of measures and seek approval of their boards for their implementation starting FY26.
The ministry virtually seeks to formulate a uniform and non- discretionary policy to be adopted by all PSBs.
Banks have been advised to automate the transfer process and develop online process for the same with facilities of giving location preference options to its employees.
Similarly, it has advised banks to transfer women employees to nearby places, stations, regions. The letter also advises banks to address grievances of employees citing violation of transfer policies in a considerate manner.
The letter says that the transfer policy has been reviewed with the purpose of bringing greater transparency in transfer policy of the PSBs.
