Government Plans of Letting PSB Leaders Work Longer. Recent news suggests that the central government is considering allowing top executives of major public sector banks, like LIC and SBI, to work for three more years until they are 65 years old instead of 62. A high-ranking official from the Finance Ministry, who was talking to PTI, confirmed they have received a suggestion to extend the time these officials can serve in PSBs. At the same time, this proposal also talks about increasing the age at which the chairpersons of LIC and SBI retire, going from the current 62 years to 65 years.
Central Govt Likely to Increase the Retirement Age for Select Senior Posts
According to a PTI report, the government is thinking about letting the heads of public banks work for 1 to 2 years longer, increasing their retirement age from 60 to 62. The current Chairman of the State Bank of India, Dinesh Khara, is set to retire at 63 in August 2023. If given a 2-year extension, he would work until he’s 65.
Similarly, the LIC Chairman, Siddharth Mohanty, is set to finish his term on June 29, 2024. If the government raises the retirement age for top bank officials, it would also likely impact LIC’s Chairman.
Why is the Govt Planning to Do So?
Many experts are of the view that the government’s intention behind extending the tenure of senior bank and PSB officials is to introduce stability in banking decisions. This move is expected to streamline decision-making processes and ensure their effectiveness over the long term. Interestingly, there have been reports suggesting a potential 10-month extension for the current SBI Chairman, Dinesh Khara.
It’s important to note that this isn’t the first instance where an extension for a senior officer’s retirement is being considered. Back in 2021, an amendment was made to the Life Insurance Corporation of India (Employees) Regulation, 1960, which raised the retirement age for the LIC Chairman to 62 years.