Business Standard

RBI board gives green signal for specialist outsiders

Related News

The first batch is likely to join the department of information and technology.

The central board of the Reserve Bank of India (RBI) has approved the proposal to hire specialists from outside — the first such move in the bank’s 75-year history.

Initially, will take only a handful of such specialists — five to six in a year — as it wants to test the system. The initial batch will have a tenure of two-five years. These will join at the — as general managers and chief general managers.

The batch is likely to join the department of information and technology (DIT), as requests from this department have already been received. Officials said RBI’s software system had not been upgraded at the same speed as other government and regulatory agencies. “A lot of people in RBI are still apprehensive of taking a decision or passing on order using the electronic format,” said an official. These are expected to help the central bank upgrade its systems to international standards.

RBI will also look for professionals in the field of inspection, and risk management, which are part of the department of banking supervision; derivatives, which is under the foreign exchange department; and reserve management, which is under the department of external investments and operations. In due course, other departments are expected to be added to the list.

The system will be a departure from the current human resource practices, as only the governor and two of the four deputy governors are inducted laterally at present. Other officers, including two deputy governors, rise through the ranks. The move comes as a lesson of the global financial crisis. Some officials believe RBI regulates various entities involved in complex functions. As a result, somebody from the external world who understands things like will help RBI understand these products better.

Read more on:   
|
|
|
|
|
|
|
|
|

RBI board gives green signal for specialist outsiders

The first batch is likely to join the department of information and technology.

The first batch is likely to join the department of information and technology.

The central board of the Reserve Bank of India (RBI) has approved the proposal to hire specialists from outside — the first such move in the bank’s 75-year history.

Initially, RBI will take only a handful of such specialists — five to six in a year — as it wants to test the system. The initial batch will have a tenure of two-five years. These professionals will join at the mid-management level — as general managers and chief general managers.

The batch is likely to join the department of information and technology (DIT), as requests from this department have already been received. Officials said RBI’s software system had not been upgraded at the same speed as other government and regulatory agencies. “A lot of people in RBI are still apprehensive of taking a decision or passing on order using the electronic format,” said an official. These IT specialists are expected to help the central bank upgrade its systems to international standards.

RBI will also look for professionals in the field of inspection, audit and risk management, which are part of the department of banking supervision; derivatives, which is under the foreign exchange department; and reserve management, which is under the department of external investments and operations. In due course, other departments are expected to be added to the list.

The system will be a departure from the current human resource practices, as only the governor and two of the four deputy governors are inducted laterally at present. Other officers, including two deputy governors, rise through the ranks. The move comes as a lesson of the global financial crisis. Some officials believe RBI regulates various entities involved in complex functions. As a result, somebody from the external world who understands things like derivatives will help RBI understand these products better.

image

Read More

Going out of Citi Suvidha? Keep higher balance

Citi India’s ‘Suvidha’ salary account holders will need to maintain a monthly net relationship value of Rs 1 lakh if their salary is no longer ...

Recommended for you

Advertisements

Quick Links

More news from Finance Rss icon

CCI dismisses complaint against Tamilnad Mercantile Bank

Order was made after a complaint filed by a timber company

SBI to make room for foreign partner

To cut stake in general insurance venture to 51% from 76%

UBI won't lend aggressively despite removal of lending restriction: CEO

The bank will continue to focus on lending to retail and SME sectors

Back to Top