The finance ministry has now tweaked the norms of promotion for the staff of state-owned banks for the current financial year so as to let more employees become eligible for it as large number of retirements stare at lenders within next few years.
Media reports said that FinMin has allowed banks to deviate from the standard practice of promotion in the bank, but with the approval of their board.
Moreover, on aspects such as minimum experience requirement for promotion to next scale, marks in annual appraisal, rural/semi-urban experience, length of service in specialised cadre, and zone of consideration, banks will still need the approval of government.
"On some operational issues regarding promotions, we have given them more freedom. But on core issues, there will be uniformity in guidelines across the banks. On core elements of the promotion policy, 80-85 per cent of the norms stipulated last year would continue," said a finance ministry official as per the media agency.
The current decade has been termed as the retirement decade by the Reserve Bank of India (RBI) as it expects lakhs of vacations to come up owing to retirements and natural attrition.