New Delhi: Taking a big decision, the central government has merged eight banks in the country. The government has also announced several measures to improve functioning. Along with this, steps have been taken to give more powers to the bank's board and to make them autonomous. Now the bank board will be able to decide the payment amount of independent directors and can also appoint the chief risk officer from outside the bank.

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Finance Minister Nirmala Sitharaman, while announcing the merger of banks as well as improvements in functioning, said, "To make the management of banks more accountable to the board, the board committee of state-run banks will now assess the performance of the general manager and above. These officers will also include managing directors of banks. After the merger, banks will also have the right to create the post of Chief General Manager as per their business needs.

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Sitharaman said that banks will be able to attract better talent by allowing them to appoint a Chief Risk Officer from outside the bank. The Board's powers have also been made flexible in deciding the salaries of these officers. Along with this, the process of succession in banks is also being given importance.

Now the board will be able to put in place a system whereby senior officers are already prepared for appointment to more responsible posts. Not only this, but the board will also have the right to ensure a tenure of two years for officers of the bank's general manager and above.

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