The Department of Financial Services (DFS) in the Finance Ministry has directed State Bank of India and other public sector banks (PSBs) to revamp their transfer policies for the employees following a surge in complaints regarding their implementation.
The objective is to promote greater transparency, and ensure formulation of a uniform and non-discretionary ‘Transfer Policy’ by these banks. Indian banking sector has nearly one million employees.
Banks have been asked to automate the transfer process and develop an online platform for the same with the facilities of giving location preference options to its employees in case of transfers.
The online portal may also include the bank’s transfer policy, guidelines and related circulars, scale wise seniority list, details of vacancies scale wise/location wise, and other relevant details in order to bring efficiency and transparency in transfer process, said a letter from the Department of Financial Services (DFS) to the chiefs of SBI and PSBs.
Transfer policy
Banks have been asked to take Board approval for the advised changes to the ‘Transfer Policy’ and undertake implementation and compliance from FY 2025-26.
Various administrative layers in the bank such as region / zone / circle / FGMO etc. should be clearly and uniformly defined. Similarly, minimum and maximum tenure at each layer be also clearly defined, DFS has advised.
DFS wants banks to clearly define ’Transfer timelines’ and strictly adhered to. Transfer exercises may be completed before June, every year. Mid-year transfers may be avoided as far as possible except in case of promotions and administrative exigencies, DFS has said.
Transfer exercise should be made transparent with annual publication of seniority list and the existing / expected vacancies at different locations / scales. Rotational transfers should be on seniority basis and exceptions, if any, should be properly recorded / documented, DFS has said.
Banks will have to accommodate officers up to Scale-III in the respective linguistic region in order to ensure seamless customer service to the extent possible, considering various factors including availability of vacancies, administrative exigencies etc.
Also, banks need to designate certain regions as ‘Difficult areas’. The employees posted there should be given preference for transfer after completion of their tenure, DFS has said.
In addition to the available grounds of transfer, the grounds of marriage / spouse / medical / maternity / child care / far away postings also be suitably incorporated.
In case of spouse working in Central / State governments, an endeavour to post them in the same place / region or nearby place / region should be made, DFS has said.
On women staff
Also, women employees should be transferred as far as possible to nearby places / stations / region. In case of posting to a far-away / remote locations, their safety be given due importance and availability of basic amenities be ensured, DFS has said.
Grievances received from employees citing violation of transfer policies should be dealt in a considerate manner and suitably responded after detailed deliberations and by duly recording the reasons thereof, DFS letter said.
With respect to appeals received on transfers from the employees, a committee should be set up to look into the issue and dispose the appeals within 15 days, the DFS has said.