The Reserve Bank of India has replaced all retired nominee directors of public sector banks (PSBs) with serving officials.

PSBs have received a written notification from the apex bank that that it is replacing the retired nominee directors on their boards. The new directors appointed are serving officials of RBI majorly holding the post of Chief General Manager (CGM).

"The retired CGMs were not so active and thus it was felt that a serving CGM should be brought to the board," said a CMD of a large commercial bank.

Serving CGMs had been a part of the board of PSBs earlier also. But in 2007, they were replaced with retired officials of RBI so as to avoid any kind of conflict between the two parties.

CMD of another large commercial bank said: "The serving CGMs would be more accountable and are likely to participate actively in the operations of the bank."

Corporation Bank now has Grace Koshie, CGM-secretary department; Canara Bank has G Padmanabhan-CGM in charge of payment and settlements; Dena Bank has B P Vijayendra-CGM at RBI, Andhra Bank has KR Ananda-regional director, south and Indian Bank has S Karuppasamy-regional director,east.