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**Report on the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022**
**1. Executive Summary:**
This report analyzes the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022, as notified by the Ministry of Finance, Department of Financial Services. The amendment modifies the term of office for wholetime Directors, including Managing Directors, of nationalized banks. It allows for an initial term of up to five years, extendable to a total of ten years, with eligibility for reappointment, subject to Central Government and Reserve Bank consultation. The core purpose of the amendment appears to be providing greater flexibility and potentially longer tenures for key leadership positions within nationalized banks.
**2. Introduction:**
This report provides an informative overview and analysis of the Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022, based solely on the provided government policy text. The purpose is to inform the affected industry about the nature and implications of this amendment.
**3. Policy Overview:**
* This document concerns amendments to two existing policies: the Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970 and the Nationalised Banks Management and Miscellaneous Provisions Scheme, 1980.
* **Core Objective(s):** Based on the text, the core objective of the amendment is to modify the regulations related to the terms of appointment and reappointment of wholetime Directors, including Managing Directors, in nationalized banks.
**4. Background and Rationale:**
As an amendment, the provided text suggests a need to adjust the existing regulations regarding the tenure of wholetime Directors, including Managing Directors. The amendment introduces the possibility of extending the term beyond the initial period, up to a total of ten years, indicating a likely rationale of retaining experienced leadership for a longer duration and providing more flexibility in leadership continuity within nationalized banks. The specific rationale for *why* this flexibility is needed isn't explicitly stated, but it can be inferred that it is to allow competent directors to continue to contribute to the banks for a longer period.
**5. Key Provisions / Changes:**
This amendment specifically modifies paragraph 8, subparagraph 1 of the original Nationalised Banks Management and Miscellaneous Provisions Schemes of 1970 and 1980.
* **Specific Part Changed:** Paragraph 8, subparagraph 1, concerning the tenure of wholetime Directors.
* **New Rule/Provision:** The new rule states that a wholetime Director (including the Managing Director) "shall hold office for such initial term not exceeding five years and extendable up to a total period, including the initial term, not exceeding ten years, as the Central Government may, after consultation with the Reserve Bank, specify and shall be eligible for reappointment."
* **Difference/Effect of Change:** The original provision (which is not provided) is being replaced with a provision that allows for an initial term of up to five years, with the possibility of extension up to a total of ten years. This provides a framework for potentially longer leadership terms. This represents a significant change, allowing for longer continuity of leadership. Eligibility for reappointment is also explicitly stated.
**6. Target Audience and Stakeholders:**
The primary target audience includes:
* Wholetime Directors and Managing Directors of nationalized banks.
* The Central Government (specifically, the Ministry of Finance, Department of Financial Services).
* The Reserve Bank of India (RBI).
* Nationalized Banks and their employees.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government (Ministry of Finance, Department of Financial Services) is responsible for implementing the amendment, in consultation with the Reserve Bank.
* **Timelines/Procedures:** The amendment came into force on the date of its publication in the Official Gazette (November 17, 2022). The Central Government specifies the initial term and any extension, after consulting with the Reserve Bank. The text provides no further procedural details.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is:
* Greater flexibility in managing the leadership of nationalized banks.
* Potential for longer tenures for effective Directors, promoting stability and continuity.
* Improved ability to retain experienced management within nationalized banks.
* Potentially allowing for the completion of longer-term strategic initiatives by bank leadership.
**9. Conclusion:**
The Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022, represents a modification to the rules governing the tenure of wholetime Directors, including Managing Directors, in nationalized banks. By allowing for potentially longer terms, this amendment aims to provide greater flexibility and continuity in leadership, with the ultimate goal of strengthening the management and performance of these important financial institutions. The amendment's significance lies in its potential to improve the stability and strategic direction of nationalized banks through longer leadership tenures.
Key Entities Referenced
Banking Companies Acquisition and Transfer of Undertakings Act, 1970: A law under which the Central Government is exercising powers to amend the Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970.
Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970: A scheme being amended by the Central Government.
Reserve Bank: An organization consulted by the Central Government in making amendments to the Nationalised Banks Management and Miscellaneous Provisions Scheme, 1970.
Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022: The short title of the amendment scheme.
SAMEER SHUKLA: Jt. Secy.
Ministry of Finance: The ministry under which the Department of Financial Services operates.
Department of Financial Services: The department issuing the notification.
New Delhi: Location of the notification issuance. State: Delhi
Banking Companies Acquisition and Transfer of Undertakings Act, 1980: A law under which the Central Government is exercising powers to amend the Nationalised Banks Management and Miscellaneous Provisions Scheme, 1980.
Nationalised Banks Management and Miscellaneous Provisions Scheme, 1980: A scheme being amended by the Central Government.
Nationalised Banks Management and Miscellaneous Provisions Amendment Scheme, 2022: The short title of the amendment scheme.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलxx.-GअID.E-1x7xx1 12022-240380
CG-DL-E-17112022-240380
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 5155] नई ददल्ली, बृहस्ट्प जतिार, निम्ब र 17, 2022/कार्नतक 26, 1944
No. 5155] NEW DELHI, THURSDAY, NOVEMBER 17, 2022/KARTIKA 26, 1944
जित्त मत्रं ालय
(जित्तीय सेिाएं जिभाग)
अजधसचू ना
नई ददल्ली, 17 निम्बर, 2022
का.आ. 5381(अ).—केन्द्रीय सरकार, बैंककारी कंपनी (उपक्रमों का अिजन और अंतरण) अजधजनयम, 1970
(1970 का 5) की धारा 9 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ररििज बैंक स े परामि ज करने के पश्चात, राष्ट्रीयकृत बैंक
(प्रबंध और प्रकीण ज उपबंध) स्ट्कीम, 1970 म ेंऔर संिोधन करने के जलए, जनम्नजलजखत स्ट्कीम बनाती ह,ै अथाजत:-
1. संजिप्त नाम और प्रारंभ - (1) इस स्ट्कीम का संजिप्त नाम राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) संिोधन स्ट्कीम,
2022 ह।ै
(2) यह रािपत्र म ें इसके प्रकािन की तारीख को प्रिृत्त होगी।
2. राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) स्ट्कीम, 1970 म ें पैरा 8 के उप पैरा (1) के स्ट्थान पर जनम्नजलजखत उप पैरा
रखा िाएगा, अथाजत:-
“(1) पूणजकाजलक जनदेिक, जिसके अंतगतज प्रबंध जनदिे क भी ह,ै अपना सम्पूणज समय राष्ट्रीयकृत बैंक के कायाजलयों
म ें लगाएगा और पांच िर्ज स े अनजधक ऐसी प्रारंजभक अिजध और ऐसी कुल अिजध, जिसके अंतगतज प्रारंजभक
अिजध भी ह,ै िो दस िर्ज की अनजधक अिजध तक जिस्ट्ताररत हो सकेगी, तक, िो केन्द्रीय सरकार ररिि ज बैंक स े
परामि ज करने के पश्चात जिजनर्ददष्ट करे, पद धारण करेगा और िह पुनर्ननयुजि का पात्र होगा।”
[ईफा. स.ं 16/69/2014-बीओ-I]
समीर िुक्ला, संयुि सजचि
7673 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
रिप्पण : मलू स्ट्कीम भारत के रािपत्र, भाग-II, खंड-3, उप-खंड (ii) म ें अजधसूचना संख्या का.आ. 3793 तारीख
16 निम्बर, 1970 द्वारा प्रकाजित की गई थी और तत्पश्चात का.आ. संख्या 3026(अ) तारीख 1 िुलाई, 2022
द्वारा संिोजधत की गई थी।
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 17th November, 2022
S.O. 5381(E).—In exercise of the powers conferred by section 9 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), the Central Government, after
consultation with the Reserve Bank, hereby makes the following scheme further to amend the Nationalised
Banks (Management and Miscellaneous Provisions) Scheme, 1970, namely:—
1. Short title and commencement.—(1) This Scheme may be called the Nationalised Banks (Management
and Miscellaneous Provisions) Amendment Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, in paragraph 8,
for sub-paragraph (1), the following sub-paragraph shall be substituted, namely:—
“(1) A whole-time Director, including the Managing Director, shall devote his whole-time to the
affairs of the nationalised bank and shall hold office for such initial term not exceeding five years
and extendable up to a total period, including the initial term, not exceeding ten years, as the
Central Government may, after consultation with the Reserve Bank, specify and shall be eligible
for re-appointment.”.
[eF. No. 16/69/2014-BO. I]
SAMEER SHUKLA, Jt. Secy.
Note: The principal Scheme was published in the Gazette of India, Part-II, section 3, sub-section (ii), vide
notification number S.O. 3793, dated the 16th November, 1970, and was last amended vide number
S.O. 3026(E), dated the 1st July, 2022.
अजधसचू ना
नई ददल्ली, 17 निम्बर, 2022
का.आ. 5382(अ).—केन्द्रीय सरकार, बैंककारी कंपनी (उपक्रमों का अिजन और अंतरण) अजधजनयम, 1980
(1980 का 40) की धारा 9 द्वारा प्रदत्त िजियों का प्रयोग करते हुए, ररििज बैंक स े परामि ज करन े के पश्चात, राष्ट्रीयकृत बैंक
(प्रबंध और प्रकीण ज उपबंध) स्ट्कीम, 1980 म ेंऔर संिोधन करने के जलए, जनम्नजलजखत स्ट्कीम बनाती ह,ै अथाजत:-
1. संजिप्त नाम और प्रारंभ - (1) इस स्ट्कीम का संजिप्त नाम राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) संिोधन स्ट्कीम,
2022 ह।ै
(2) यह रािपत्र म ें इसके प्रकािन की तारीख को प्रिृत्त होगी।
2. राष्ट्रीयकृत बैंक (प्रबंध और प्रकीणज उपबंध) स्ट्कीम, 1980 म ें पैरा 8 के उप पैरा (1) के स्ट्थान पर जनम्नजलजखत उप पैरा
रखा िाएगा, अथाजत:-
“(1) पूणजकाजलक जनदेिक, जिसके अंतगजत प्रबंध जनदिे क भी ह,ै अपना सम्पणू ज समय राष्ट्रीयकृत बैंक के कायाजलयों म ें
लगाएगा और पांच िर्ज स े अनजधक ऐसी प्रारंजभक अिजध और ऐसी कुल अिजध, जिसके अंतगतज प्रारंजभक अिजध भी ह,ै िो
दस िर् ज की अनजधक अिजध तक जिस्ट्ताररत हो सकेगी, तक, िो केन्द्रीय सरकार ररिि ज बकैं स े परामि ज करन े के पश्चात
जिजनर्ददष्ट करे, पद धारण करेगा और िह पुनर्ननयुजि का पात्र होगा।”
[ईफा. स.ं 16/69/2014-बीओ-I]
समीर िुक्ला, संयुि सजचि[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
रिप्पण: मूल स्ट्कीम भारत के रािपत्र, असाधारण, भाग-II, खंड-3, उप-खंड (ii) म ें अजधसूचना संख्या का.आ. 875(अ)
तारीख 4 निम्बर, 1980 द्वारा प्रकाजित की गई थी और तत्पश्चात का.आ. संख्या 3027(अ) तारीख 1 िुलाई,
2022 द्वारा संिोजधत की गई थी।
NOTIFICATION
New Delhi, the 17th November, 2022
S.O. 5382(E).—In exercise of the powers conferred by section 9 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government, after
consultation with the Reserve Bank, hereby makes the following scheme further to amend the Nationalised
Banks (Management and Miscellaneous Provisions) Scheme, 1980, namely:—
1. Short title and commencement. — (1) This Scheme may be called the Nationalised Banks
(Management and Miscellaneous Provisions) Amendment Scheme, 2022.
(2) It shall come into force on the date of its publication in the Official Gazette.
2. In the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980, in paragraph 8,
for sub-paragraph (1), the following sub-paragraph shall be substituted, namely:—
“(1) A whole-time Director, including the Managing Director, shall devote his whole-time to the
affairs of the nationalised bank and shall hold office for such initial term not exceeding five years
and extendable up to a total period, including the initial term, not exceeding ten years, as the
Central Government may, after consultation with the Reserve Bank, specify and shall be eligible
for re-appointment.”.
[eF. No. 16/69/2014-BO. I]
SAMEER SHUKLA, Jt. Secy.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-
Section (ii) vide notification number S.O.875 (E), the dated 4th November, 1980, and was last
amended vide number S.O. 3027(E), dated the 1st July, 2022.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.