Reserve Bank of India (RBI) employees have sought a ‘thorough’ review of recent changes brought in the supervisory functions of the bank and the present mechanism.
To revamp its supervisory mechanism, RBI created a specialised supervisory and regulatory cadre under the Department of Supervision (DOS) and Department of Regulation (DOR) in November 2019 as a distinctly separate department in the bank. The officers opting for this department will not be allowed to move out of it, and the department will be ‘fenced off’.
“With the final date of exercising the option drawing to a close, most of the bank officials are opting out, thereby creating a human resource problem for the newly-floated department as well as its functions which are bound to adversely affect the bank’s supervision,” All India Reserve Bank Employees Association said in statement.
“The rigmarole of separate department with exclusive workforce has to be thought afresh instead of (making) some cosmetic changes. The on-site supervision of banks has to be restored and thoroughly planned, instead of solely depending on the inputs provided by regulated entities which might be contrived, as evidenced in the PNB scam, IL&FS fiasco and PMC Bank fraud,” the association said.