After several Public Sector Banks (PSBs) acknowledged the shortage of staff, especially clerical, the finance ministry has reportedly asked bank chiefs to take stock of the employment situation in these entities. The ministry has sought a monthly hiring plan from the banks, a report in the Times of India (TOI) stated.

Unlike private sector banks, there are more branches of PSBs in rural areas. The bankers said that in rural areas of the country, people still prefer going to the branches instead of using their services digitally. However, there is a shortage of clerical staff to manage the large number of customers.

The TOI report added that in the last 10 years, till March 2021, the number of branches of PSBs in India has gone up by 28 per cent. The number of branches was up from 67,466 in 2010-11 to 86,311 in 2020-21. On the other hand, the total staff strength has fallen from 776,000 in 2010-11 to 771,000 lakh in 2020-21.

While the number of officers has gone up by 26 per cent, the number of subordinates has fallen sharply.

The move comes after Prime Minister Narendra Modi in June asked the government departments to create 1 million jobs by December 2023. Also, Finance minister Nirmala Sitharaman recently stated that the front desk staff in banks must know the local language.

According to reports, Financial Services Secretary Sanjay Malhotra will meet the bankers and seek a time-bound plan for job creation in PSBs.