In a first, Reserve Bank of India to have CFO soon

The Reserve Bank of India (RBI) will soon have a chief financial officer (CFO) to oversee financial reporting and accounts, besides shaping policies. 

Spelling out job responsibilities for the CFO, who will be of the rank of executive director, the RBI said he or she would be responsible for “accurate and timely presentation and reporting of financial information”. 

The head of finance should essentially be a qualified chartered accountant with at least 15 years of experience of overseeing financial operations of banks or financial firms, the central bank said in a notification seeking applications for the position.

Till now, the central bank does not have a dedicated official handling the finance function, and the tasks are being carried out internally.

The CFO’s responsibilities will also include establishing accounting policies and procedures, and ensuring compliance with financial regulations and standards. 

The CFO would communicate both the expected and actual financial performance of the bank. His work will also involve overseeing the Budget process, collecting inputs and comparing actual performance vis-à-vis the Budget Estimates. 

Raghuram Rajan, during his tenure as RBI governor, had toyed with the idea of having a chief operating officer of the rank of deputy governor. Rajan wanted Nachiket Mor, presently director on the central board of the RBI, to be in that position, said two senior bankers.  

The RBI expects the CFO to flag risks to the finances and develop strategies to counter and mitigate the same. He would have oversight of three departments, including department of government and bank accounts, corporate strategy and budget department, department of corporate services.

About the compensation package for the CFO, the RBI said that for regular appointment (on permanent basis), the selected person will draw a starting basic pay of Rs 1,20,500 a month and will also be eligible for dearness allowance, house allowance, special allowance and local compensatory allowance.

The gross monthly emoluments for the post will be about Rs 2,40,660. The person will get the perquisites as available to the post of executive director and will be eligible for superannuation benefits. For the person coming on contract, appointment would be on cost-to-company (CTC) basis. 

The cost per month works out as Rs 2 lakh a month with housing. Without RBI’s housing, the CTC will about Rs 4 lakh a month. Those on contract would not be eligible for allowance and perks.