Page 51 - Banking Finance September 2025

A R T IC L E
ARTICLE
the corporate social responsibility (CSR) initiatives etc could term targets-quarterly earnings, IPO pressures, or political
really help in this drive. election cycles. This may encounter the problem demanding
long-term vision, patient execution, and sacrificing personal
Challenges of Adopting Level Five gains for institutional benefits.
Leadership in India
4. Resistance to Power Decentralization is
Despite its alignment with Indian philosophical traditions,
another grave problem in Indian organizations. Internal
implementing Level Five Leadership in Indian organizations
resistance, insecurity among senior leaders, and fear of loss
faces several systemic, cultural, and organizational barriers.
of control may hinder such efforts.
1. Legacy of Hierarchical Leadership Structures
5. Low Tolerance for Vulnerability
Indian businesses, especially family-owned and traditional Admitting mistakes or showing vulnerability is often viewed
sectors, are deeply entrenched in hierarchical decision- as weakness in Indian leadership culture.Challenge here is
making. Authority and status often correlate with positional that level five leaders display personal humility and accept
power, making it difficult for humility-based leadership to their limitations. Consequence is that this openness can be
gain acceptance.
misinterpreted as weakness, especially in male-dominated
Another challenge is that the Leaders are expected to display leadership environments.
assertiveness, dominance, and command rather than
humility or servant leadership. On the other hand, Emerging Conclusion
Level Five Leaders may face resistance, be perceived as India's future as a global economic and social powerhouse
weak, or struggle to influence entrenched systems. depends not just on its technological capabilities or market size,
but on the quality of its leadership. In a time of disruption,
2. Cultural Hero Worship and Personality-Centric inequality, and societal awakening, Level Five Leadership offers
Leadership a blueprint for Indian leaders to build ethical, resilient, and
inclusive organizations that stand the test of time.
Indian society and media often glorify larger-than-life
leaders, reinforcing the belief that charisma and personal
brilliance are indispensable traits of successful leadership. By blending ancient Indian values of humility, service, and
duty with modern leadership competencies like professional
Main challenge here is that Level Five Leaders, who prefer will, vision, and governance, Indian leaders can transform
to operate quietly and let the organization take the not only businesses but also communities and the nation.
spotlight, may struggle for visibility or support. The absence
of a dominant face may create stakeholder discomfort, In the words of Jim Collins, "Level Five Leaders channel their
especially in family businesses, politics, or start ups could be ego needs away from themselves and into the larger goal
the consequences. of building a great company." For Indian leaders, this
translates to channelling personal ambition into the greater
3. Short-Termism in Business and Governance purpose of nation-building, societal upliftment, and
The Indian business environment is often driven by short- institution crafting.

RBI drafts standardised rules for faster claim settlement on deceased accounts
The Reserve Bank of India (RBI) has proposed new directions to streamline and simplify the process of settling claims
on bank accounts and lockers of deceased customers. Under the draft 'RBI (Settlement of Claims in respect of De-
ceased Customers of Banks) Directions, 2025', banks must process claims within 15 calendar days from the receipt
of all required documents. The central bank has also suggested standardised forms to make the process more trans-
parent and less time-consuming. For accounts with nominated beneficiaries, only a death certificate, claim form,
and valid ID are required. In non-nomination cases, a simplified process will be used for claims up to Rs. 15 lakh,
requiring a bond of indemnity and a no-objection declaration from other legal heirs. Claims exceeding this threshold
will need a succession certificate or legal heir declaration. The RBI has invited feedback on the draft directions until
August 27 to ensure wider stakeholder participation.

46 | 2025 | SEPTEMBER | BANKING FINANCE