Professionalize Reserve Bank of India
January 21, 2020
This refers to the thought-provoking letter captioned “History repeats itself” from veteran ExRBite R C Mody (Business Standard, January 21). There can be no two views on the need for revamp of the supervisory and regulatory arms of RBI by organizational restructuring and infusion of fresh talent for restoring the pride position of the central bank by redefining its role in the context of the changes in the financial sector during the last couple of decades.
In right earnest, RBI has initiated action in this direction by discussing the issue at its Central Board meetings last year. The main hurdle is RBI's own weak HR department and top management manned by individuals with uncertain short tenures.
One wonders why an organization which received appreciation at the international level for its appropriate management of monetary policy and meeting various other role expectations excellently well is finding itself in the lurch when it comes to managing its own house at this juncture.
RBI has a glorious past and a team that can handle its mandated role efficiently. Regrouping of departments or infusing fresh talent to address new tasks should not become subjects for fresh controversy.
As suggested by Mody, a quick study by experts may be commissioned to find solutions to the problems as the issues involve a total overhaul of personnel management to meet a variety of emerging functional needs covering recruitment, placement, training, career progression, remuneration and lateral and vertical mobility.
Perhaps the idea of an Indian Financial Sector Service similar to Indian Civil Services to cater to the future needs of statutory bodies like RBI, NABARD and SIDBI and all institutions in the financial sector also can be mooted at this stage.
M G Warrier, Mumbai