Retirement Age New Update: Speaking to PTI, a highly placed official of the Finance Ministry confirmed that they have received a suggestion to extend the service time of these officers in PSBs. In this proposal, it has been asked to increase the retirement age of the chairmen of LIC and SBI from the existing 62 years to 65 years.
Retirement Age New Update: The government wants to make the people involved in PSB (Public Sector Bank) work for a long time. 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 till they reach the age of 65 instead of 62.
Speaking to PTI, a highly placed official of the Finance Ministry confirmed that they have received a suggestion to extend the tenure of these officers in PSBs. In this proposal, it has been asked to increase the retirement age of the chairmen of LIC and SBI from the existing 62 years to 65 years.
Retirement age may be increased on selected senior posts
According to a PTI report, the government is considering increasing the retirement age of public sector bank chiefs from 60 to 62, allowing them to work for 1 to 2 more years. The current chairman of State Bank of India, Dinesh Khara is set to retire in August 2023 at the age of 63. If he is given an extension of 2 years, he will work till the age of 65 years.
Similarly, the term of LIC Chairman, Siddhartha Mohanty is ending on June 29, 2024. If the government increases the retirement age for top bank officials, it will also benefit the LIC chairman.
Why is the government planning to do this?
Many experts believe that the government’s intention behind extending the tenure of senior bank and PSB officials is to bring stability in banking decisions. The move is expected to streamline the decision-making processes and ensure their effectiveness in the long run. Interestingly, there have been reports that Dinesh Khara, the current SBI chairman, may be given an extension of a possible 10 months.
It is important to note that this is not the first instance where extension of superannuation of a senior official is being considered. In 2021, an amendment was made to the Life Insurance Corporation of India (Employees) Regulation, 1960, which increased the retirement age for LIC Chairman to 62 years.
