File photo of RBI Governor Raghuram Rajan

Banks have sought government support in areas like empowering them in recruitment and compensation decisions for attracting better talent.

Top bankers of the country had gathered in Pune to draw up a blueprint for reforms of the banking sector and made presentations to Prime Minister Narendra Modi.

Finance Minister Arun Jaitley and Reserve Bank of India Governor Raghuram Rajan also attended the retreat. In the two-day bankers' conclave, the government clearly asked the lenders to be free in expressing their views and ideas.

Stressing on the need for public sector banks to recruit young talent, train, and retain them, Mr Rajan said, "The government needs to have a relook at the campus recruitment which at present is banned because of a Supreme Court ruling."

Mr Jaitley also said there is a need to give greater autonomy to banks. "There is a need to get the best talent into the system. There is a need for far greater autonomy being given to them (state-run banks)," he said.

NDTV had earlier reported the bankers sought leeway to allow them to do campus recruitment like the way it is done by private sector banks.

Currently, the recruitment in public sector banks is done through Institute of Banking Personnel Selection or IBPS twice in a year.