RBI cuts faculty allowance as Governor Shaktikanta Das appeals for calm

The bank cut faculty allowances of members at various training establishments to 10% of the basic, from 30% earlier, without giving any reason

As soon as Reserve Bank of India (RBI) governor Shaktikanta Das requested junior and mid-level officers, on a stir against the central bank’s promotion policy, to maintain peace, the bank initiated one more cut in allowances late on Friday.

This time, the bank cut faculty allowances of members at various training establishments to 10 per cent of the basic, from 30 per cent earlier, without giving any reason. The notification came late on Friday.

“This is deliberately done to insult central bank staffers, or there is something deeper,” said an official. However, the staff said these changes were initiated before the new governor took office. “The agitation was silent so far, now it may blow over,” said the official.  

Das had met representatives from the officers’ association on Thursday and promised them more discussion on the promotion cut-off matter, sources familiar with the matter said. These members briefed other employees on Friday evening that the governor was open to discussions, but first wanted to learn the details of the promotion policy.

The officials had first tried to meet deputy governor Viral Acharya, who is in charge of human resource at RBI. However, Acharya was reportedly not willing for any discussions. Now, with the governor agreeing to revisit the issue, Acharya may have to re-think about his stance, sources said.

The association plans to submit a detailed paper to the government on the issue on Wednesday to argue why rolling back the new promotion policy is necessary. Members of the same briefed the officers till late in the evening, and fielded the same questions repeatedly on the promotion policy, sources in the meeting said. The bank’s HR department stirred up a hornets’ nest last Friday, when it issued a circular that the bottom 25 per cent in the grade B to C and D to E won’t get a promotion — a ceiling raised from the earlier bottom 10 per cent earlier. 

Not only that, the “officers who are not found suitable for promotion under the time bound promotion (TBP) scheme in three successive years, will have to serve a cooling period of two years before being considered eligible for promotion under the scheme again,” said the internal circular signed by the chief general manager, in-charge, human resource. Business Standard has a copy of the circular.

Officers from all grades went on a protest against the policy as the scope for promotion is getting limited with positions at the top being filled up by lateral recruits, and also because people are not due for retirement in some departments till 2021.

The bell curve for promotion was started by Raghuram Rajan, when Urjit Patel was a deputy governor. Patel took this one step further by shaving off the bottom 10 per cent through a 12 February circular. 

Importantly, this circular was issued just one day before preparing the list for promotion, giving no time for discussions on the matter.

The ceiling was raised to 25 per cent on December 14, the day when the new governor attended his first board meet. However, the ceiling was raised following the recommendation of an internal committee under Patel. According to the staffers, introduction of the bell curve stifled honest exchange of views for fear of displeasing the bosses. Acharya used the appraisal system as a tool for deciding on promotion and training issues in the bank.