Nurture more specialists: RBI tells PSBs

In wake of recent bond market squeeze, RBI emphasises on importance of expertise in such areas

The Reserve Bank of India (RBI) wants public sector banks to create long-term career plans for people in specialised positions.

A currency or bond dealer should remain in the treasury department and progress through that particular vertical, instead of getting transferred across departments, is what a section of senior RBI officials have informally told PSBs, say sources.

Following the 'short squeeze' in the bond market, the central bank had sent advisories to all banks. It said the lenders, which control 70 per cent of the market between themselves, should not collude to create difficulties for other market participants. A few large PSBs