Acting swiftly on Prime Minister Narendra Modi's promise of non-interference in working of public sector banks, Finance Ministry on Monday issued directions asking PSBs to act without "fear or favour" and to ignore "extraneous considerations" in their commercial decisions.
The Ministry also assured the banks and other financial institutions that there will be no government interference in transfer and postings within the organisations.
"The banks/FIs should take all commercial decisions in the best interest of the organisation without fear or favour," the ministry said in communication to chiefs of all state-run banks, FIs and insurance companies.
It further said that no decision should be taken due to any "extraneous consideration.”