Reserve Bank of India governor Raghuram Rajan on Wednesday announced a restructuring in some of its departments, elevating key senior officials as part of an ongoing revamp programme that aims to widen the central bank’s analytical and research capabilities.
The portfolio reorganisation, which includes promotion of three senior officers as executive directors, is scheduled to be completed by the end of the month, the RBI said in a statement. The reallocation of portfolios will be effective from November 3.
Under the exercise, MD Patra will head the departments of economic and policy research, monetary policy, and communication, while KK Vohra will manage human resources, corporate strategy and budget; G Mahalingam will be in charge of the department of statistics and information management, financial market operations and the international department.
The move is widely seen as part of RBI governor Raghuram Rajan’s efforts to improve the central bank’s research expertise and bring it on par with that of the US Federal Reserve and the UK’s Bank of England.
The reorganisation has focused on portfolio reallocation in departments such as risk monitoring, foreign exchange, financial markets regulation, department of currency management, department of banking regulation and banking supervision.
“RBI’s role and responsibilities have increased and the effort is to align the central bank with the best in the world,” said the treasury head of a private bank.
“Departments have been moved to be in sync with the larger role of monetary policy-making.”
The key focus is on departments such as financial markets regulation, which covers market intelligence and the departments of economic and policy research and monetary policy, which looks after the forecasting and modelling units.
“The RBI has also sent a signal that it plans to take on an enhanced role in effectively forecasting inflation and to draw appropriate plans to address the situation,” said the finance director of a Mumbai-based company.
The RBI board recently approved Rajan’s plan to create the post of a chief operating officer besides that of an additional deputy governor.