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. The decision was taken after receiving the report of a committee constituted to examine the selection process adopted for the appointment of CMDs and EDs of Public Sector Banks for the year 2014 -15. The committee consisted of Secretary Expenditure, Secretary School Education and the RBI Governor.

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 government decided that a fresh process for selection would have to be implemented for filing up these existing vacancies where-in the RBI Governor or his nominee of the rank of the Deputy Governor should be part of the selection process.

The Ministry also said the Government has decided to finalize a new process for selection of CMDs and EDs for all future vacancies.

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