RBI Revamp

The Hindu Business Line, August 20, 2014:

RBI revamp*

This refers to the report “RBI Governor to hold talks with unions on HR rejig” (August 19, 2014). There can be no two views on the need for revamp of the organizational structure and restoring the pride position of the central bank by redefining its role in the context of the changes in the financial sector  during the recent couple of decades. But, the manner in which proposals are being made and the inept handling of the whole issue in RBI so far makes one wonder whether an organization which had received appreciation at the international level for its appropriate management of monetary policy and other role expectations is finding itself in the lurch when it comes to managing its own house.
Dr Raghuram Rajan is a fast learner and the willingness expressed by him to negotiate the HR issues with representatives of staff and renegotiate top level changes where legislative amendments are necessary with GOI are indicative of his open mind.
For an outsider, the media reports on the issue gives an impression that the new Governor, at least initially addressed internal issues in a manner a CEO of a start-up company would approach HR issues. RBI has a glorious past and a team that can handle its mandated role efficiently. Regrouping of departments or coordinating among four Deputy Governors should not become street discussions. The coordination at the highest level is Governor’s responsibility and it does not stand reason if this is what is being proposed to be delegated to a fifth Deputy Governor. This job was being effectively performed by the Governor and his Executive Assistant in the past.
M G Warrier, Mumbai

*Submitted version


Popular posts from this blog



The King of Ragas: Sankarabharanam