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Reserve Bank's committee on capacity building has suggested that banks must avoid transfer for the sake of norms and make them need based as per leadership requirement.
"Job rotation in banks, especially PSBs, should not be done in a mechanical manner but through a well laid down criteria.
"Transfers should focus on critical requirement like leadership across the geography and posts that require high concentration of power..., need-based transfers may be undertaken," said the Committee on 'Capacity Building in Banks and Non Banks'.
Banks must avoid transfer for the sake of preset norms, it added.
The 10-member committee is chaired by RBI's former Executive Director G Gopalakrishna.
It said banks should allow specialisation up to level III or IV so that demands of contemporary banking needs are met.
Among others, the report has recommended creating a position of Chief Learning Officer in banks for leadership development, knowledge dissemination and sharing.
The report has also recommended six-steps strategy for skill development; coaching or mentoring process for entry- level employees; top management training and supervisory focus on human resource management in banks.
Further, the report has suggested a common Banking Aptitude Test at a national level for entry level employees.
"The BAT score can be designed to provide an insight into the candidate's aptitude for banking; it is a necessary but not sufficient condition for selection as a bank employee. All banks can subscribe to and participate in the design and adoption of BAT as their common basic filter for recruitment."
It also said a centre of excellence (CoE) for leadership development may be created either as an independent institute or under the aegis of Centre for Advanced Financial Research and Learning(CAFRAL).
The report also said CAFRAL can administer the mentoring programme for CMD/CEOs of banks.
"It can create a pool of select, top notch, highly regarded mentors who can be invited to conduct the mentoring programs for CMD/CEOs of banks."
To address the issue of replacement of talent in banks, it has recommended that an expert pool be created internally as well as free movement of talent within organisation.
"One of the major bottlenecks banks face is in terms of finding suitable replacement of talent that is necessitated on account of attrition, retirement... Special recruitment based on job roles and competency could also be considered," it said.
The committee has asked for suggestions or comments on the evolving framework to operationalise the recommendations on or before October 31, 2014.
