Don't 'waste this crisis', Subbarao tells RBI staff

Don’t “waste this crisis.” “Learn from it!” This was the message Governor D Subbarao gave to Reserve Bank of India staff on New Year’s eve.

“No crisis can last for ever. This one too will pass; but as some people are saying, we should not ‘waste this crisis’. We should learn from it, find out what went right and what went wrong and take appropriate corrective action,” Subbarao wrote in his message.

“This is what will distinguish winners from losers. It should be our endeavour to see that we are among the winners,” he said.

Open minded
Subbarao said he believes in being “open minded”, “admitting mistakes” where they have occurred and “correcting them.”

“I trust the senior management has similar appreciation,” he said.

According to Subbarao, the central bank was facing an extraordinary challenge.

“The global financial crisis has turned into a full blown global economic crisis. It is now clear that the global recession will be deeper, and the recovery longer than we had earlier anticipated,” he said.

RBI’s response to crisis mitigation has received appreciation as well as criticism. “That is fair, and is only to be expected.”

“I personally have learnt a lot from listening to criticism, being open minded and admitting mistakes where they have occurred and correcting them,” he said.

Subbarao said the global financial crisis deepened shortly after he joined Mint Street, thereby allowing him no time to “learn and understand.”

“I was challenged to act even as I was traversing a steep learning curve,” he said, thanking deputy governors and other senior officials of RBI for their support. “I have been deeply impressed by the level of expertise, competence, and the sense of purpose at all levels of the RBI hierarchy,” he said.

‘Think out of the box’
Subbarao told RBI staff that the crisis was both a challenge and opportunity and he demanded best of analysis from the personnel.

“A challenge because a lot is expected from us. An opportunity because it gives us a chance to demonstrate that we can rise to the occasion, lead from the front, think out of the box and act swiftly and effectively,” he said.

“I am confident I will get best of analysis, advice, and co-operation from each and every one of you in meeting this challenge head on,” he wrote to staff.

The governor also reminded the central bank’s staff that managing crisis is only a small part of the greater role that RBI plays, though it is taking bulk of the time.

“In fact, even as we are managing the crisis, we must think of improving what we routinely do and how well we deliver public service,” he concluded, urging RBIites to make a difference.

“At the core of our work ethic should be the question, how can I make a difference?”