25% increase in private banks, strict advice from RBI

There has been an increase of about 25% in the attrition rate of employees in private sector banks during 2023-24. This situation is for private banks operational risk Is becoming the cause. Issued by Reserve Bank of India (RBI) Trend and Progress of Banking in India 2023-24 This concern has been expressed in the report.

Attrition rate reaches 25%: big challenge

The report states that the number of employees of private banks will exceed that of public sector banks (PSBs). But the increase in the rate of employee attrition has created new challenges for these banks.

• Operational Risk:
  • Disruption in customer service.
  • Lack of institutional knowledge.
  • Increasing expenditure on recruitment.
• RBI solved this problem Human Resources (HR) only not a job, but a strategic need Told.

RBI’s advice to banks

To retain employees for longer periods and reduce attrition rates, RBI has advised banks to take the following steps:

1. Better onboarding process:
   • Providing employees with the right information and support right from the start.
2. Comprehensive Training and Career Development:
   • To provide opportunities to employees for growth in their skills and career.
3. Mentorship Programme:
   • Mentoring the employees with seniors to empower them and enrich their experience.
4. Competitive Benefits:
   • Making salaries, bonuses and other benefits competitive.
5. Supportive Workplace Culture:
   • To create a positive and inspiring work environment for employees.

RBI’s attention on irregularities in gold loan

The report has also highlighted the irregularities found in giving loans against gold ornaments and jewellery.

• RBI advised:
  • Monitoring entities need to review their gold loan policies, procedures, and practices. comprehensive review Will have to do.
  • There is a strong need to identify the shortcomings and implement timely corrective measures.