Consolidated revised ACC guidelines lor appointment of Whole-Time Directors in Public Sector Banks

No. 7/l/2024-BO.I Covernment of India Ministry of Finance Department of Financial Services Jeevan Deep Building, 3'd floor Parliament Street, New Delhi - I l0 001 08th october 2025 To: l. The Chairman, State Bank of India, Central Office, Mumbai 2. The Managing Director & Chicf Executive Officcr, all Nationalised Banks Subject: Consolidated revised ACC guidelines lor appointment of Wole-Time Directors in Public Sector Banks Sir, I am directed to convey that the Appointments Committee of the Cabinet (ACC) has approved the revised consolidated guidelines for appointment of Whole-Time Directors (WTDs) in Public Sector Banks (PSBs). These guidelines are in supersession of all the earlier ACC guidelines issued in this regard. A copy of the communication dated 04. 10.2025, received from the Secretariat of the ACC, along with the revised consolidated guidelines, is annexed for information. Yours faithfully, Encl.: as above (Sanjay K r ) Under Secretary to the Government of India Tel:0ll -23747189 E-mail: bol @nic.inr{Ra rr.6T{ Government of lndia {hqsfrcfrgfrsfrfreIqfuinf,q Secretrariat of the Appointments Committee of the Cabinet ofioGqRrsurEr+rrl Oepartment of Personnel & Training enq+3{fu6rfr61trrqfdq Office of the Establishment Officer o-dqr{r'- T{frd os, Kartavya Bhavan - 03, New Delhi li. t No.'t I t z3 t zozq -Eo(ACc ) q-qfft-6 / Dated: u.1o:025 Reference correspondence resting with the Department of Financial Services' communication No. 7 l1 12024-BO.l dated 01.09.2025. 2. The Appoint nents Committee of the Cabinet (ACC) has approved the revised/ consolidated guidelines for the selection of whole-time Directors (wTDs) of Public sector Banks (PSBS), as annexed herewith, superseding all the earlier ACC guidelines issued in respect of appointment of Whole-time Directors of Public Sector Banks. \r (Vi,ay Kumar Da(ak) Deputy Director (ACC) 8:24010428 Department of Financial Services (Shri M. Nagaraju, Secretary) Jeevan Deep Building, Parliament Street New Delhi. Copy foMarded for information to :- 1. PMO (Ms. Manmeet Kaur, Director) 2. Cabinet Secretariat (Ms. Kavita Singh, Joint Secretary) 3. Sr. PPS to Establishment Officer 4. Guard File/Office Order folder. \l \o (Vijay Kumar Darak) Deputy Oirector (ACC)( Annexure CONSOLIDATED GUIDELINES F'OR APPOINTMENT OF WHOLE-TIME DIRBCTORS IN PUBLIC SECTOR BANKS The Appointments Comrnittee of the Cabinet, from time to time, has approved guidelines for appointment of whole-Time Directors on the board of public sector banks. In order to have uniform sequencing of eligibility criteria and to align rhe same rvith the changing banking industry, the Appointrnents committee of the cabinet, in supersession of all the earlier guidelines on the subject, has approved the following revised consolidaled guidelines for appointment of whole-Tirne Directors on the board of public sector banks. These revised consolidated guidelines shall be applicable from rhe date ofapproval by the Appointments committee of the cabinet. In cases where the Financial Services Institutions Bureau (FSIB) has initiated the selection process bu; the candidate / panel recommendation is pending with FSIB, these revised consolidated guidelines shall apply. However, in case the FSIB has already sent the recommendation to Departmeni of Financial Services, the process shall be cornpreted as per earlier guidelines. 1. Chairman, State Bank of India .l I I Age & residual Service: I I The candidates should have minimum 50 years ofage. I 1.2 I Date of reckoning eligibility: Date of vacancy of the post. I I 1.3 EducationalQualification: I A candidate must hold a Graduate degree of any of the Universities I incorporated by an Act of the central or state regislature in India or other I educational institutions established by an Act of parliament or declared to , be deemed as a university under Section 3 of the University crants Commission Act 1956 or possess an equivalent qualification. I I 1,4 Experience/Servicerequirement: x All serving Managing Directors of SBI. :l E 1.5 t Selection Process: (i) $ Selection process shalr bc in accordance with the Financial Services g Institutions Bureau (FSIB) Resolution, issued by Department of T Financial Services vrde F. No. l4/l/2022-Bo-l dated 1..1.2022. I published in the Gazctte of India, Extraordinary, part I, Section l, ii amended from time to time. ir (ii) FSIB may hire the HR agency tbr carrying out the behavior an<J ,H i $1- competency assessment of the candidates. The HR agency would be I x x Page 1 of 10 \-\\\o fr Iconfined to only doing preliminary assessment about applicants and would not be involved in short listing ofcandidates. (iii) There shall be no marks for APARs. Candidates shall be awarded marks out of 100, on the basis of performance during interaction with FSIB. t.6 Required clearance from organization concerned: Clearance from Central Vigilance Commission and consultation with RBI shall be required before submission ofproposal to ACC. t.7 Term of Office: Term of office shall be as per Section 20 of the State Bank of India Act, 1955 and the age of superannuation shall be 63 years' 1.8 Salary and other terms and conditions: The salary package and other terms and conditions of appointment of Whole-time Directors shall be as decided by the Central Government from time to time. t.9 Validity of panel: To meei the eventuality of .candidate not joining the selected post or being found not suitable for the post due to any other reasons, candidates from the waiting list fnay be considered. The waiting list shall have such number of candidates, not more than two, as FSIB considers appropriate' The validity of the panel, consisting of recommended and waiting list candidates for the post, flr submission of the proposal to the ACC, shall be six months frorn ih. dut. of recommendation by FSIB. Further, the panel ceases to be in operation, ifa candidatejoins the post. 1.10 Additional Charge: (A) The poweito assign additional charge arrangement up to an initial pe.iod ofthree months from the date ofvacancy is delegated to the Finance Minister, subject to the following conditions: (i) Additional charge of the Chairman, SBI is assigned to the senior most Managing Director of the Bank' (ii) The officer to whom the charge is being proposed to be assigred is clear from vigilance angle' (iii) Timely action has been taken to fill up the vacancy' Further, the above additional charge arrangement may be extended up to a p"iioO bO months from the date of vacancy, only in cases where the selection process is underwaY. ' (B) For additional charge arrangements beyond six months (to be reckoned from the date ofvacancy) and in case ofany deviation from the conditions prescribed at (A) above, the proposal should be submitted to the ACC. q*r -{L \\\o P:.ge 2 of l0l.ll Pcnalty: Ilan olficer has been irnposed hvo or rnore majorpenalties in his /her carccr, he/she shall not be eligible to apply for the position olChairrnan, SBl. The penalties irnposed, including minor penalties, on the applicants during the last ten years period shall also be disclosed. 2. Managing Dircctor in Statc Bank of India 2.1 Age & Residual Service: 'l'he candidates should have minimurn 45 years of age and 2 years ol' rcsidual service I lreating 60 years as the date of superannuat ion of eligiblc 'l'he candidates]. condition of residual service shall not be applicable in cases ol'cxtension o.l'tenure / re-appoinhnent. 2.2 Date of rcckoning eligibility: DaIe ol'vacancy of the post(s). 2.3 EducationalQualifications: A Candidate must hold a Graduate degree of any of the Universities incorporated by an Act of the Central or State legis.lature in India or othcr educational institutions established by an Act of parliament or <Ieclared to be decrned as a University under Section 3 of thc University Crants Cornmission Act 1956 or possess an equivalcnt qualification. 2.4 Experience/Servicc requirement: (A) For positions carnrarkcd for candidatcs fronr public Sector Banks only: Three (3) positions of MD shall be fillcd from the internal cantlitlates liom PSBs. 1'hc eligibility criteria shall be as under: (D Deputy Managing Directors (DMDs) of the State llank ol India (SBI) with at least two-years olservice as DMD. (ir) 'I he EDs ol nationalized banks with at least two years of service as ED. (iii) MD&CEO of a Narionalised Bank with at least two year as MD&CEO in the present posting and has a residual servicc of two years [treating 60 years as the clatc of strperannuation]. (iv) Candidares lrolding rhc post of Chicl'Vigilance Olficer (CVO) shall not be eligible to be considered for appointrnent to the post. (B) For opcn position: One (l) position of MD shall be open lbr all the eligible candidatcs. 'the eligibility criteria shall be as under: (l) For Privatc Candidatcs: 'l-hc candi<latcs must have minimum 2l years of cxpericncc with at least l5 years o[ banking experience with: (i) at leasr 2 year ar rhe b'nnk board level, or \o -(L Pagc 3 of 10 qtl \\\o(ii) ( at least 3 years at the highest level below bank board level (to be held on substantive basis). (II) Candidates eligible under public sector position shall also be eligible to apply under open position. Note: From the date of coming into force of these guidelines, the first vacancy of MD, SBI shall be treated as open. Subsequent vacancies, arising after filling of the first vacancy, shall be filled from among the eligible candidates holding position in PSBs. 2.5 Procedure for selection: (i) Selection process shall be in accordance with the Financial Services Institutions Bureau (FSIB) Resolution F.No. 14/|/2022-BOJ dated 1..7 .2022, published in the Gazette of India, Extraordinary, Part I, Section l, amended from time to time. (ii) FSIB may hire the HR agency for carrying out the behavior and competency assessment ofthe candidates. The HR agency would be confined to only doing preliminary assessment about applicants and would not be involved in short listing ofcandidates. (iii) There shall be no marks for APARs. Candidates shall be awarded I marks out of 100, on the basis of perlormance during interaction with FSIB. 2.6 Required Clearances from Organization concerned: ! t (a) For candidates from Private Sector: I Clearances from IB and consultation with RBI shall be required ! before submission of proposal to ACC' a I (b) Candidates from Public Sector Banks only: il Clearance from Central Vigilance Commission and consultation I with RBI shall be required before submission of proposal to ACC' I t Term of Office: :'! Term of office shall be as per Section 20 ofthe State Bank ollndia Act, li 1955 and the age of superannuation shall be 60 years. ;; i.i 2.8 Salary and other terms and conditions: ,! '1, The salary package and other terms and conditions of appointment of T $ whole-time Directors shall be as decided by the Central Government from T I time to time. I E 2.9 Validity of panel: To meet the eventuality of candidate(s) not joining the selected post(s) or being found not suitable for the post(s) due to any other reasons, candidates p from the waiting list may be considered. The waiting list shall have such $ EI q*,\, number of candidates, not more than two, as FSIB considers appropriate I Page 4 of l0 IH $to d tiand shall be separate for each position to be lilled from intemal candidates (PSBs) and open position. The validity of the panel, consisting of recommended and waiting list candidates for the post(s), tbr submission of the proposal to the ACC, shall be six months from the date of recommendation by FSIB. Further, the panel ceases to be in operation for a post, ifa candidatejoins the post. 2.10 Penalty: For Candidates from Public Sector Banks: If an officer has been imposed two or more major penalties in his /trer career, he/she shall not be eligible to apply for the position of MD, SBI. The penalties imposed including rninor penalties on the applicants during the last ten years period shall also be disclosed. J Managing Director and Chief Executive Officer of Nationalised Banks 3.1 Age & Residual Service: The candidates should have rninimum 45 years of age and 3 years of residual service [treating 60 years as the date of superannuation of eligible candidates]. The condition of residual service shall not be applicable in cases ofextension oftenure / re-appointment. i I 3.2 Date of reckoning eligibilify: I t Date of vacancy ofthe post(s). I I 3.3 I EducationalQualifications: A I Candidate must hold a Graduate degree of any of the Universities I incorporated by an Act ofthe Central or State legislature in India or other I I educational institutions established by an Act of parliament or declared to I be deemed as a University under Section 3 of the University Grants I Commission Act 1956 or possess an equivalent qualification. I t 3.4 Experience/ServiceRequirement: t (a) i For candidates from Private Sector: I The candidates must have minimum 2l years of experience with at least 15 years of banking experience with: r (i) '; at least 2 years at the bank board level in bank, or iT (ii) t at least 3 years at the highest level below bank board levol (to be held on substantive basis). (b) For candidates from Public Sector Banks only: The candidates must have minimum 2l years ofexperience in balking and as: (i) Deputy Managing Directors (DMDs) of the State Bank of India (SBI) with at least one year of service as DMD, or ,^d q\tt Page 5 of 10(ii) The EDs of Nationalized banks with at least one year of service as ED, or (iiD MD&CEO ol a Nationalised Bank with at least one year as MD&CEO in the present posting and has a residual service of two years [treating 60 years as the date of superannuation]. (iv) Candidates holding the post of Chief Vigilance Officer (CVO) shall be eligible to be considered for appointment to the post, except for the post in the bank in which he is holding the post ofCVO. 3.5 Selection Process: Open advertisement in which candidates both from private and public sector with banking experience are eligible. (D Selection process shall be in accordance with the Financial Services Institutions Bureau (FSIB) Resolution F. No' 14/112022-BO-I dated l.'7 .2022, published in the Gazette of India, Extraordinary, Part I' Section 1, amended from time to time' (ii) FSIB may hire the HR agency for carrying out the behavior. and competency assessment of the candidates. The HR agency would be I confined to only doing prelirninary assessment about applicants and would not be involved in short listing ofcandidates' I i I (iii) There shall be no marks for APARs. Candidates shall be awarded ! marks out of 100' on the basis of performance during interaction I I with FSIB. I 3.6 Required Clearances from Organization concerned: t l ; (a) For candidates from Private Sector: I Clearances from IB and consultation with RBI shall be required I before submission of proposal to ACC. T I I (b) For candidates from Public Sector Banks only: 5 Clearance from Central Vigilance Commission and consultation tj I with RBI shall be required before submission of proposal to ACC' i 3.'1 s Term of Office: 6 Term of office shall be as per Paragraph 8(l) of the Nationalised Banks iI (Management and Miscellaneous Provisions) Scheme, 1970 and 1980 and I the age of superannuation shall be 60 years. "l i Central Government, may, after consultation with Reserve Bank and I with the recommendations of FSIB, by notification published in the official IB gazefte, post a Managing Director and Chief Executive Officer of a 0 l nationalised bank, to any other naticinalised bank. The competent authority E shall be ACC. E E -,.rde !E rr\lo Page 6 of 10 f; .E; I3.8 Salary and other terms and conditions: The salary package and other terms and conditions of appointrnent of whole-time Directors shall be as decided by the Central Govemment lrom time to time. 3.9 Validity of panel: To meet the eventuality of candidate(s) not joining the selected post(s) or being found not suitable for the post(s) due to any other reasons, candidates from the waiting list may be considered. The waiting list shall be prepared separately for each post of MD&CEO, and shall have such number of candidates, not more than two, as FSIB considers appropriate. The validity of each panel, consisting of recommended and waiting list candidates for each post, for subrnission ofproposal to the ACC, shall be six months from the date of recommendation by FSIB. Further, the panel ceases to be in operation for a post, if a candidatejoins the post. 3.10 AdditionalCharge: (A) The power to assign additional charge arrangement up to an initial period of three months from the date ofvacancy is delegated to the Finance Minister, subject to the following conditions: (i) Additional charge of the MD&CEO of nationalized bank, is assigned to the senior most Executive Director of the Bank. (iD I The officer to whom the charge is being proposed to be I assigned is clear from vigilance angle. (iii) I Timely action has been taken to fill up the vacancy. I I , Further, the above additional charge arrangement may be extended up to a I period 06 months from the date of vacancy, only in cases wheri the I l selection process is underway. IN (B) For additional charge arrangements beyond six months (to be f IT rcckoned from the date ofvacancy) and in case ofany deviation from I the conditions prescribed at (A) above, the proposal should be Ir i submitted to the ACC. t 3.1 I Penalty: ! For candidates from Public Sector Banks: II If an officer has been imposed two or more major penalties in his /her I career, helshe shall not be eligible to apply for the position of MD&CEO, Nationalised Banks. The penarties imposed incruding minor penarties on tb lj the applicants during the last ten years period shall also be disclosed. I E x I r o \ \o Page 7 of 70 E $ t ct4 Executive Directors of Nationalised Banks 4.1 Age & Residual Service: The candidates should have minimum 40 years of age and 3 years of residual service I treating 60 years as the date of superannuation of eligible candidatesl. The condition of residual service shall not be applicable in cases of extension of tenure / re-appointment. 4.2 Date of reckoning eligibilitY: The cut of date for determining the eligibility shall be reckoned from 1't day of April ofthe financial year in which the vacancies arise' 4.3 EducationalQualifications: ACandidatemustholdaGraduatedegreeofanyoftheUniversities incorporated by an Act of the central or State legislature in India or other educational institutions established by an Act of Parliament or declared to be deemed as a University under Section 3 of the University Grants Commission Act 1956 or possess an equivalent qualification' 4.4 Experience/Servicerequirement: (A). For large banks (Rs.> l0 lakh crore business): (i) F'or the positions earmarked for candidates from Nationalised Banks only: 3 positions of ED shall be filled from the internal candidates of the Nationalised banks' The I eligibility criteria shall be as under: The officer of the Nationalised Banks with combined i service of 4 years at Chief General Manager and General I I Manager level till FY 2027 -28 ' Afterwards, the eligibility condition shall be Chief General Manager with two years of I I I servlce. t I Candidates holding the post of Chief Vigilance Officer I (CVO) shall not be eligible to be considered for appointrnent , to the post. a (iD For open position: I position of ED shall be open for all the eligible candidates. The eligibility criteria shall be as undcr: (a) For Private candidates: The candidates should have minimum i' l8 years of experience with l2 years of banking experience n( including 3 years at the highest level below board level (to be g held on substantive basis). I I (b) Candidates eligible under intemal position shall also be ! , eligible to apply under open position. I B u uqfr""" ra =0- l1 Page 8 of 10 t Yltb li e(B) For others Nationalised Banks: The olficer of the Nationalised Banks with combined service ol4 years at Chief General Manager and General Manager level till FY 2027 -28. Afterwards, the eligibility condition shall be Chief General Manager with two years of service. Candidates holding the post of Chief Vigilance Officer (CVO) shall not be eligible to be considered for appointment to the post. Note: From the date of coming into force of these guidelines, the first vacancy of ED in large banks shall be treated as open. Subsequent vacancies, arising after filling of the first vacancy, shall be filled from among the eligible candidates holding position in PSBs. 4.5 Procedure for selection: (i) Selection process shall be in accordance with the Financial Services Institutions Bureau (FSIB) Resolution F.No. l4/112022-8O-I dated 1.7 .2022, published in the Cazerte of India, Extraordinary, Part I, Section l, amended from time to time. ii) FSIB may hire the HR agency for carrying out the behavior and competency assessment of the cand.idates. The HR agency would be confined to only doing preliminary assessment about applicants and would not be involved in short listing of candidates. (a) For the position earmarked for candidates from I I Nationalised Banks only: I 30 marks be awarded for APARs for five years (maximum 6 I I I marks of each year subject to his/trer grading e. 6 marks for r'. I outstanding, 4 marks for very good and 2 marks forgood) and I t remaining 70 marks assigned on the basis of performance I during interaction with FSIB. I t (b) For open position: I Th-ere shall be no marks for APARs. Candidates shall be i awarded marks out of 100, on the basis ofperfonnance during interaction with FSIB lr 4.6 Required Clearances from Organization concerned: I (i) For candidates from Private sector: { Clearances from IB and consultation with RBI shall be require<l A E befbre submission of proposal to ACC. H (ii) For candidates from Prrblic Sector Banks: $ Clearance from Central Vigilance Commission and consultation f with RBI shall be required before submission of proposal to ACC. ll , Wr a ! Page 9 of 10 r g\ro E4.7 Term of oIlice: Term of office shall be as per Paragraph 8(l) of the Nationalised Banks (Managernent and Miscellaneous Provisions) Scheme, 1970 and 1980 and the age of superannuation shall be 60 years. Central Govemment, may, after consultation with Reserve Banh and with the recornmendations of FSIB, by notification published in the ofticial gazette, post an Executive Director in a nationalised bank, to any other nationalised bank. The competent authority shall be ACC. 4.8 Salary and other terms and conditions: The salary package and other terms and conditions of appointment of whole-time Directors shall be as decided by the Central Government from time to time. 4.9 Validity of panel: To meet the eventuality of candidate(s) not joining the selected post(s) or being found not suitable for the post(s) due to any other reasons or any other subsequent vacancies arising during the financial year, candidates from the waiting list may be considered. The waiting list may have at least l/3rd of the vacancies or a minimum of 1 candidate, whichever is higher, or any other number which FSIB considers appropriate. The waiting list shall be I separate for each position i.e. open position and intemal position. The I validity of each panel, consisting of recommended and waiting list candidates, prepared by FSIB for each position, for submission ofproposal I to ACC shall be up to 3 lst March of the financial year for which it has been II prepared. I 4.10 Penalty: I ] For candidates from Public Sector Banks: I If an officer has been imposed two or more major penalties in his /her iE career, he/she shall not be eligible to apply for the position of ED, t \ Nationalised Banks. The penalties imposed, including minor penalties, on i the applicants during the last ten years period shall also be disclosed. I E E T s d E it \)ro Ia -Sr ta, E T i I Pagc 10 of 10 ! I $