RBI board approves radical changes, introduces COO post as proposed by Raghuram Rajan

In a bid to introduce radical changes in the functioning of the Reserve Bank of India, the RBI board has approved Governor Raghuram Rajan’s proposal of shrinking organizational cumbersomeness and reducing overlaps. It also seeks to create the post of Chief Operating Officer (COO), an executive who’s likely to be made responsible for executing the RBI’s reform agenda.
Rajan proposed to bring all aspects of RBI under 5 functional departments to be supervised by 4 Deputy Governors and a COO. He suggested merging some departments to avoid overlaps. He is also inclined to make lateral hires from the private sector as practiced in the West.
Nachiket Mor is seen as the most likely candidate for the post of COO. Mor is a former executive director of ICICI Bank and also chaired the RBI panel on financial inclusion.
Since the position of COO is likely to be at the deputy governor level, the post’s status will have to be discussed further with the government, and which may also necessitate some legislative amendments.

Month: Current Affairs - August, 2014