Here is today’s important banking news to keep you updated and help you prepare for IBPS and other bank exams:
Important Banking News: No Interviews: PSU Banks Asked to Strengthen Exam for Clerical Posts
- The Finance Ministry has asked public sector banks to strengthen written examination for recruitment of clerical and sub-staff posts as there will be no interviews for such appointments.
- The decision to change the recruitment process follows Prime Minister Narendra Modi’s directive that there was no need for holding interviews for lower level posts.
- “PSBs (public sector banks) may explore other alternatives to strengthen written examination such as by including psychometric tests, etc. to replace interview mechanism,” the Department of Financial Services said in a communication to chief executives of all the 27 state-owned banks.
- The PSU banks were asked to take “necessary action” to discontinue interviews in the recruitment process for the clerical and sub-staff posts by December 31, 2015.
- The Committee of Secretaries chaired by Cabinet Secretary in its meeting held on November 13 had recommended discontinuation of interviews in PSU banks for junior level posts.
- PM Modi had announced that from January 1, 2016 there would be no interviews for central government jobs in Class-III and IV categories. He had termed it as a “New Year Gift” to the youth and a major step to curb corruption.
- Recently, the Department of Personnel and Training (DoPT) had said that skill test or physical test may continue as it is different from interview.
- “However, these tests will only be of qualifying nature. Assessment will not be done on the basis of marks for such tests,” it had said.
- In case of specific posts where a ministry or department wants to continue with interview as a process of recruitment, a detailed proposal seeking exemption has to be sent to DoPT with the approval of the minister or minister in-charge.
- The ministries have been asked to send a consolidated report to the DoPT by January 7 in this regard.
Important Banking News: Government Has Framework to Address MSME Bad Loans: Minister
- The Centre has created a framework for revival and rehabilitation of MSMEs (micro, small and medium enterprises), which account for nearly half of the non-performing assets (NPAs) of banks from the industry sector, Union Minister Kalraj Mishra said on Sunday.
- Of the Rs 1.13 lakh crore NPAs of banks from industries in the country, the MSME sector alone accounts for Rs 40,000 crore to Rs 50,000 crore, he told reporters here.
- The high NPAs or band loans of the sector are a cause for concern for the ministry, which has created a framework for revival and rehabilitation of the units, Mr Mishra said.
- It provides for identification of incipient stress in MSMEs, and the committee constituted by banks for distressed firms will prepare a corrective action plan so that they are given an opportunity to get revived, rehabilitated or closed, he said.
- The sector is facing the challenge of high cost of funds and lack of marketing strategy, the MSME Minister said, adding that he favours lower interest component for MSMEs.
- The ministry is also trying to implement e-governance in the department so that all transactions became transparent, leading to corruption-free administration, he said.
- On providing financial assistance to MSMEs affected due to floods in Chennai, Mr Mishra said it was under “serious consideration”.
- More than 53,000 MSME units are functioning in Tamil Nadu, and with the help of the state government his ministry will identify a cluster in Coimbatore to provide a boost the sector, he added.
- Mr Mishra said he had on Saturday visited nearby Tirupur, the knitwear hub, and assured of steps to set up a Knitwear Design Studio at a cost of Rs 15 crore and also a common industrial facilitation centre.