Don't `bank' on B-school graduates alone: RBI Deputy Guv

Mumbai: Reserve Bank Deputy Governor K C Chakrabarty questioned lenders' fascination with hiring B-school graduates and said that with concepts like financial inclusion being the driving theme, the banking sector needs personnel connected to the ground realities.

"When financial inclusion is the major concern of Indian banking, don't we need people who would be closer to the ground realities of the countryside? How many of these people recruited through B-schools will have empathy towards the poorest of the poor? Why should we be rushing to the B-school campuses for recruitments?" he asked.

Chakrabarty strongly favoured the conventional pattern of recruiting through competitive exams so that everyone gets afair chance of getting employment and the banks find the right talent.

By going to the campuses, banks will get the "skills and knowledge" but not "talent" which comes naturally to an individual, he said, pointing out to his own personal experience of getting into a bank through a competitive exam.

Chakrabarty also questioned the practice of online job applications, which is gaining currency among banks, saying that given the low Internet penetration, how many people would actually apply for the job?

Because of the increasing thrust on financial inclusion, Chakrabarty said a greater stress should be also laid on hiring and training the right business correspondents who will act as a bank's representatives in villages.

Source: Financial Express