The decision, taken during the meeting of the state Cabinet chaired by Chief Minister Akhilesh Yadav, is in contrast of its March 2012 order allowing posting of head constables and constables in their own or neighbouring districts.
The decision to revive the old provision is aimed at strengthening law and order and curb corruption, according to a spokesperson.
The new order also says that the police personnel could not be posted in the districts where they own immovable assets.
It was also decided to reorganise State Road Safety Council and to set up a high-power committee under the chairmanship of Chief Secretary. A Road Safety Cell at Transport Commissioner's office will also be set up.
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The Cabinet approved the transfer policy for session 2014-15 and as per the new policy, provision has been made for transfer of officers posted in one district for six years and 10 years in a division.
The departmental heads could transfer officers but it would not exceed the limit of 10 per cent and all the transfers will be completed by July 15 in the current session.
A decision on a policy to operate airline services in the state was also taken.
To promote regional airlines the government will give certain facilities and promotion according to "free sky policy".