Home / Business / Money / RBI’s COO will be an internal candidate: Sources

RBI’s COO will be an internal candidate: Sources

The press has interpreted the Reserve Bank of India (RBI) revamp and the likely appointment of a Chief Operating Officer (COO) in form of Nachiket Mor as a battle between government and RBI. However, according a number of CGMs and one RM this actually suggestion came from the internal ranks of RBI.

The RBI’s restructuring involving clustering its 21 departments into 5 groups was an idea suggested by the central bank’s middle management comprising Chief General Managers (CGMs) and Regional Managers (RMs). The Governor and the DGs are only handholding a process that RBI’s staff wanted.

The press has interpreted the Reserve Bank of India (RBI) revamp and the likely appointment of a Chief Operating Officer (COO) in form of Nachiket Mor as a battle between government and RBI. However, according a number of CGMs and one RM this actually suggestion came from the internal ranks of RBI.

The RBI has offsite meetings in which groups of RMs and CGMs get together and are asked to suggest take up any important issue that bothers them. It is in one of these offsites that this idea of re-clustering the departments according to their functional nature, functional likes and dissimilarities originated. The governor picked up that idea when it was presented to him and then asked that it be fashioned into a report. In small parts Deloitte helped but largely it was an internal report into which the CGMs and RMs gave their ideas.

Now, the fifth deputy governor (DG) was suggested by the internal report as a COO because he or she was expected to look after the internal affairs of RBI. Now if it becomes a DG then it requires the amendment of the RBI Act but the report itself sees that COO position as an internal candidate because it has nothing external about it. An outsider can’t bring much to it. It has to be someone who has risen from the ranks who can reorganise or refashion the running of RBIs internal affairs.

The RM and the CGMs who spoke to CNBC-TV18 were specific in saying that mixing up Nachiket Mor’s name in this whole issue is absolutely a confusion because if anything then logic of the situation suggested it should be an internal candidate. But of course if it becomes a DG then it is a search committee. So again no one knows who will get that position.

So, they believe that this overtone of government versus RBI in this whole thing is quite uncalled for and clearly not true. It is an incorrect picture of the entire process.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...