Steps taken to protect bona fide decisions of bankers: FM Nirmala Sitharaman

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. (File)

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…

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