DBOD.No. BP.BC.59/21.01.023/98

June 15, 1998
Jyestha 25, 1920 (Saka)

The Chief Executives of all Commercial Banks (other than Regional Rural Banks)

Dear Sir,

Sanctioning power of bank officials prior to retirement

Please refer to our circular DBOD. No. BC. 32/17.04.001/94 dated March 24, 1994 advising, inter alia, that during the period of three months prior to retirement, Regional Heads at Controlling Offices and Senior Executives of the rank of Assistant/Deputy General Manager and above at Head Office level, should exercise their sanctioning powers jointly with other officials. It was also provided that the powers of ED/CMD, during the period of 3 months prior to retirement should be exercised respectively by the CMD/the Management Committee.

2. The position has since been reviewed and it has been decided that banks may permit Regional Heads at Controlling Offices, Senior Executives and Top Executives at Head Office level including CMD and ED to exercise the sanctioning powers delegated to them during the period of three months prior to retirement also. However, the proposals sanctioned by them during the period should be put up immediately to the next higher authority.

3. The Board may prescribe suitable mechanism to ensure that sanctions made by Branch Managers during the period of three months prior to retirement are reported promptly to the next higher authority.

Yours faithfully,

(A. Ghosh)

Chief General Manager