RBI has only itself to blame

RBI has only itself to blame

Possibly, this is something that the vocal RBI Deputy Governor KC Chakrabarty should turn his attention to instead of railing at these banks, for the misdemeanours of the broader system. Because more than how these banks be.....have, the broader issue is how RBI approaches institutional issues in the banking sector, chasing will-o’-the-wisps. It is these aberrations that possibly encourage banks to pick up shortcuts.......


Posted by RBI PS FRATERNITY at 8:55:00 AM Email ThisBlogThis!Share to TwitterShare to Facebook1 comment:

M G Warrier said...

This takes us to a much wider HR issue. Inability to hire experts at market related compensation up to the position of Secretary/CEO in government and public sector is behind the reluctance of the government to take any diversion from the path of just shuffling over-aged civil servants and executives at the top instead of throwing at least some posts open for market competition. There may not be a fit for all method for the purpose, as the competence needs are diverse and sometimes sector/institution-specific.

The Government and public sector organizations may have to consider how best the ‘Cost to Company’(C to C) principles can be integrated into their existing recruitment, training, placement and career progression policies. Short-cuts like withdrawing pension scheme and replacing it by NPS, which in reality is ‘No Pension’ Scheme now being resorted to will do more harm to the system. An overhaul from top to bottom as regards HR practices is overdue.

Recent revamping of Tata Administrative Service gives enough food for thought for thinking on these lines. Specialized services like one for Banking/Financial Sector could be evolved for institutions including those in the private sector and all regulatory bodies in the financial sector.

A transparent guidance for remuneration package based on paying capacity/need for skills for different sectors and ensuring social security should come from government without always worrying about what will be the impact on Cabinet Secretary’s salary or trade union demands. If the government secretary deserves a higher salary, government should not raise budgetary concerns for not paying it. Instead, merger of some departments and utilizing the surplus manpower for new job opportunities should be a wiser option. Government can support smooth implementation of a vibrant HR policy in public sector organisations by keeping its hands off the autonomy of statutory bodies and regulatory institutions at least in regard to day-to-day administration and HR Management. Allowing existing institutional framework to function smoothly without the fear of Government usurping the powers and work areas when performance of mandated functions by statutory bodies and regulators become politically inconvenient in the coalition dispensation is also equally important.

Aug 18, 2012 9:44:00 AM

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