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HindustanTimes Wed,17 Sep 2014

RBI wants to appoint COO, FM unwilling

HT Correspondent, Hindustan Times  New Delhi, August 15, 2014
First Published: 01:11 IST(15/8/2014) | Last Updated: 01:15 IST(15/8/2014)

The finance ministry will examine the Reserve Bank of India’s (RBI’s) proposal to create a new post of chief operating officer (COO) once the central bank sends it for consideration.

The central bank’s board hasapproved the human resource (HR) restructuring by creating an additional post of chief operating officer (COO) in the rank of deputy governor and is to approach the government for required legislative changes.

“We would examine it, the appointment of COO or fifth RBI deputy governor cannot take place without amending the RBI Act,” GS Sandhu, secretary, finance services told HT.

The RBI Act stipulates that the central board shall consist of a governor and (not more than four) deputy governors. Nachiket Mor, former executive director of ICICI, who also headed the a committee set up by the RBI on financial inclusion, is tipped to be appointed as the COO.

The restructuring proposals and the grouping of departments into five functional clusters have been widely discussed at various levels in the Reserve Bank.

RBI has been deliberating a broad human resources (HR) restructuring exercise. “The purpose of the exercise has been to align the organisational resources and structures of the bank with the needs of the domestic economy and changes in the external environment,” a statement by RBI said.

Sources within the central banks said that discussions have been held with all employees on the issue. “The bank will address concerns of employees if they are brought to the fore,” a source who did not wish to be identified said. There were reports that a certain section of the staff has voiced their concern on the restructuring exercise.

RBI governor Raghuram Rajan wants to trim the various departments at the central bank and is also keen on lateral hiring from the private sector, a practice followed in other developed countries including the US and UK.


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