Where Angels Prey

Where Angels Prey is a novel by Ramesh S Arunachalam. Please refer to www.whereangelsprey.com for more information

Monday, October 14, 2013

Reorganising bank selection advisory panel is a good governance imperative for the RBI!

Ramesh S Arunachalam

There is a common misconception that conflict of interest only arises if a person has done something improper. The answer is a big NO! Perception is a very critical aspect to the notion of conflict of interest

In the last few Moneylife articles, we have been talking about the issue of conflict of interest with regard to the recently appointed RBI financial inclusion committee and in this article I focus on the RBI banking selection advisory panel. At the outset, I would like to state that serious conflicts of interests exist because one of the members of the banking selection advisory panel, Dr Nachiket Mor, is also chair of the RBI financial inclusion committee which has two members who have directly applied for the banking licenses. Further, several members of the above mentioned RBI financial inclusion committee have a relationship to these and other banking license applicants. The key relationships have already been highlighted in the previous money life articles and the interested reader may refer to these for understanding the exact nature of the various conflicting relations -  RBI’s New Financial Inclusion Committee: Rife with conflicts of interests,  Does the RBI know how much conflicts of interest it has created? and Why should RBI immediately disband newly appointed Committee on Financial Inclusion?

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