Finance Minister Nirmala Sitharaman has approved the creation of Chief General Manager (CGM) positions in five additional nationalized banks, including Bank of Maharashtra, Central Bank of India, and UCO Bank. This new role will be positioned below the board level and aims to enhance the operational efficiency and administrative structure of these banks.

 

Key Details of the Announcement

  1. Promotion of Existing Managers: Indian Overseas Bank and Punjab and Sind Bank will also be able to promote their General Managers to the CGM position. Previously, CGM roles existed in only six of the eleven nationalized banks.
  2. Increase in CGM Count: The Ministry of Finance stated that the approval includes an increase in the number of existing CGM positions in banks where they are already established. This move is expected to improve administrative efficiency and management within the banking sector.
  3. Operational Role: The CGM position will serve as an administrative and functional level between General Managers (GMs) and Executive Directors (board-level positions) in nationalized banks.
  4. Focus on Key Areas: The expansion of CGM positions will allow banks to better address critical areas such as:
    • Digitization
    • Cybersecurity
    • Financial technology
    • Risk management
    • Compliance
    • Financial inclusion, particularly in rural banking
  5. Enhanced Monitoring: The increase in CGM roles will facilitate better control and oversight, leading to improved asset management and operational efficiency. According to the statement, as of March 31, 2023, the number of CGMs will be revised based on the business volume of the banks, establishing one CGM position for every four General Managers.
  6. Broader Impact: The creation of this post will not only benefit the GMs promoted to CGM but also enhance opportunities for other managerial levels, including Deputy General Managers (DGMs) and Assistant General Managers (AGMs). The structure suggests that for each CGM position, there will be an increase of four GM positions, twelve DGM positions, and thirty-six AGM positions.
  7. Overall Increase: With this amendment, the total number of CGM positions across all eleven nationalized banks will rise from 80 to 144.

 

The establishment of CGM positions represents a strategic move to strengthen the operational framework of nationalized banks in India, ensuring a more robust and efficient banking system that can effectively respond to emerging challenges in the financial landscape.

Important Data Summary

Aspect Details
Minister Nirmala Sitharaman
Banks Involved Bank of Maharashtra, Central Bank of India, UCO Bank, Indian Overseas Bank, Punjab and Sind Bank
Previous CGM Positions 6 out of 11 nationalized banks
New CGM Count Increase from 80 to 144
Structure Impact 1 CGM for every 4 GMs; increases in DGMs and AGMs
Focus Areas Digitization, cybersecurity, financial technology, risk management, compliance, rural banking
Implementation Date Effective from March 31, 2023

This initiative will play a significant role in enhancing the banking sector’s capacity to meet the demands of modern banking while improving oversight and operational efficiency


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