A fair, transparent and objective mechanism for performance management is a must for all banks because an effective Performance Management System is the key to talent management and succession planning. In RBI we are shortly going to introduce a new Performance Management System that will work on goal setting, potential appraisal of performers and developing a talent pipeline.
Reserve Bank has been alive to the potential problems in this regard and I have had occasion to refer to these while releasing the India Development Report in January 2005. The need for active management of Capital account and issues relating to such management are well recognised now, but the complexity of relevant issues in the implementation of such management has increased.