The board of Reserve Bank of India (RBI) has approved the creation of a new post -- chief operative officer (COO) – to oversee one of the five functional clusters planned by the bank in its thrust to reorganise the organisation.
RBI said in a statement on Thursday, "The restructuring proposals and the grouping of departments into five functional clusters have been widely discussed at various levels in the RBI. One of the proposals envisaged the creation of an additional position of a COO of the rank of deputy governor to head one of the five functional clusters."
With two government nominees Arvind Mayaram and financial services secretary GS Sandhu on the RBI board, the central bank will embark on the restructuring plan.
The RBI has been deliberating on a broad human resources (HR) restructuring exercise. The purpose of the exercise has been to align the organisational resources and structures of the bank keeping in tune with the needs of the domestic economy and changes in the external environment.
The proposals essentially revolve around bringing functional synergies in operations by grouping departments into clusters and also leveraging human resources to bring about greater professionalism and specialisation so as to enhance the effectiveness of the Bank's operations and policy making. The proposals involve professionalisation of human resources functions in the RBI, including a more effective performance management system and responsive and proactive skill and leadership development programmes.
The board has also asked the RBI to initiate a dialogue with the government on the additional post of deputy governor and the legislative changes that will be needed. The central bank will proceed further in the matter keeping such advice in view.
Though RBI did not reveal which organisations would be merged, some departments such as the supervision and inspection departments of banks as well as non-banking finance companies could be merged to avoid overlap. Currently, these departments report to different deputy governors.