Shyamal Majumdar: Rajan's wake-up call for RBI staff

Shyamal Majumdar: Rajan's wake-up call for RBI staff: The regulator would do well to practise what it preaches to the regulated


Most of the media comments on RBI Governor Dr Rajan’s
2016 message to his colleagues with the exception of the report “Rajan bats for
more powers to RBI board, posted by Anup Roy in this paper on January 13,
suffered from ‘five blind men and the elephant’ syndrome. From the 2500 words
message, each one picked up bits and pieces and commented. This article is no
There are several organisations like ISRO, ONGC, Tatas
Group and IIMs in India which have better managements and HR practices compared
to RBI. But none of them can claim the kind of involvement in India’s economic
development and continued presence in public glare that RBI is exposed to, for
the last 80 plus years. It is true that Rajan’s taking charge as Governor has
had an impact on RBI’s performance and the institutional vision. But, all that
Dr Rajan provided was leadership and the team RBI readily accepted his
leadership. Tell me the name of another comparable organisation, in size and
responsibilities, in the world which has performed consistently well for 80
years, despite the handicap of having majority of the top management from
outside (someone, long ago referred to them as ‘birds of passage’).
RBI has been recruiting the best talent available in
the market till IT sector started luring those whose academic record was
excellent, including IIM and IIT products offering skye-high remuneration
packages for average jobs. Still, within RBI, there is a reasonably acceptable
talent pool even today. RBI has been reviewing and updating its recruitment,
training and placement policies on an ongoing basis. Its training establishments
are second to none in India and where necessary RBI sends its officers for training
outside within the country and abroad in cases the kind of opportunities for
specialisation do not exist in India.
A word about performance appraisal. Jargons apart, a
fairly modern appraisal system exists in RBI. Rajan has mentioned about the
need to make improvements, for  which
there is ‘always scope’.
Also read my letter “Message for RBI board” published
in Business Standard today(January 15, 2016).

M G Warrier, Mumbai


Popular posts from this blog


The King of Ragas: Sankarabharanam