Finance minister Nirmala Sitharaman on Tuesday said the government has finalised a consolidated staff accountability framework for bad loan accounts up to Rs 50 crore and initiated a raft of other measures to protect bona fide commercial decisions of bankers and assuage their fears over any unwarranted hardships for taking key decisions.
In a reply in the Rajya Sabha, Sitharaman said these measures include amendments to the Prevention of Corruption Act (PC Act), 1988, requirement of prior permission before initiating investigation against a public servant, setting up of Advisory Board for Banking and Financial Frauds for first level of examination of suspected frauds of banks and financial institutions in excess of `50 crore and finalisation of Consolidated Staff Accountability Framework.
In consultation with Central Vigilance Commission, the government has finalised the staff accountability framework, which will come into force from April 1, 2022.
State-run banks have been asked to revise their respective staff accountability and other relevant policies, as required, within this framework with approval of their respective boards, she informed the House.
“The Staff Accountability Framework is aimed at protecting bona fide decisions taken by the bank…