The reminder of the Gentleman Governor to the representatives of the Finance Ministry to act through the Boards of banks on which they are represented is timely. He had advanced the argument on the ground of good corporate governance.RBI should also inform the Finance Ministry that with considerable private participation in the equity of public sector banks,Government would have to reexamine their earlier role as owners and not also tread on the toes of the RBI in the performance of the regulatory/supervisory functions.Governor would have to protect the RBI from overzealous and bureaucrats in the Finance Ministry as otherwise it would not be able to take full responsibility for its regulatory and supervisory functions vis-a-vis banks under the Banking Regulation Act.
- A.Chandramouliswaran
This plain speaking by Governor RBI to the Babus in Finmin has not come a day sooner than required. It was long overdue particularly since the induction of Mr. Mittal to the Ministry. His frequent dispatches to CMD of PSBs were nothing short of uncalled for interference in day to day functioning of PSBs whether it may be promotion policy, transfer or posting policy etc. etc. which essentially should be left to the CMDs and their HR Managers. Babus should bear in mind that these PSBs, most of which are now listed entities, should no longer be treated as their sole fiefdom. Now with the change of guards in Finmin, it is hoped that the PM who is also holding the Finmin charge would advise these Babus to refrain from micromanaging the PSBs and as suggested by Gov.RBI would set an exemplary Corporate Governance practices. We wish the Gov. RBI with the same zeal and zest should shield RBI from the unwarraned interference of Finmin Babus in administrative functions of RBI whether it was revision of pay scales or updation of pension etc.
- M.L.Mahajan, Ex-GM, HRMD
