About the committee:
- This Committee was set up by RBI as recommended by the Financial Sector Legislative Reforms Commission (FSLRC), a body set up in 2011 to reform the institutional and legal structures of the financial sector
- Chairman: G. Gopalakrishna, Executive Director(now retired), Reserve Bank of India. Total 10 members in the committee.
- Aim: To ensure availability of skill sets at all levels for effective delivery on required roles and responsibilities
- The committee gave many recommendations:
- It envisaged capacity building in terms of HR management practices, underlining the strategic importance of HR in affecting the top and bottom lines of balance sheets
- On training methodologies and interventions, including requiring employees to pass certification programmes prior to being promoted
- The committee has recommended a 360-degree feedback for a transparent and comprehensive performance assessment exercise, one that ensures adequate performance differentiation between employees
- It also suggested that banks must avoid transfer for the sake of norms and make them need based as per leadership requirement.
- Create a position of Chief Learning Officer in banks for leadership development, knowledge dissemination and sharing.
- The report has suggested a common Banking Aptitude Test at a national level for entry level employees
- Centre for Advanced Financial Research and Learning (CAFRAL) can administer the mentoring programme for CMD/CEOs of banks
- The concept of capacity building went beyond just training and included human resource development, organisational development, institutional and legal framework development.
- June 23rd: The central bank is in discussions with the Ministry of Finance, Government of India and the Indian Banks’ Association to make the recommendations of the Committee operational