The government has canceled the current selection process for the posts of chairman and managing director, CMD and executive director ED of Public Sector Banks.

In a statement, the Finance Ministry said that the government constituted a committee consisting of Secretary Expenditure, Secretary School Education and the RBI Governor to examine the selection process adopted for the selections to the posts of CMDs and EDs of Public Sector Banks for the year 2014 -15.

It also stated that the RBI Governor or a nominee of the rank of Deputy Governor of the central bank has to be part of the new selection process.

As a result of scrapping the earlier selection process, eight posts of CMDs and fourteen posts of EDs would require to be filled up afresh. The ministry also said the Government has decided to finalise a new process for selection of CMDs and EDs for all future vacancies.

The government decision comes on the back of the CBI finding irregularities in the PSU chief selection process after Syndicate Bank CMD SK Jain's arrest in August over graft charges.