Page 49 - Banking Finance March 2021

ARTICLE

performance levels. Therefore the processes of performance country's socio-economic goals depends to a large extent
appraisal helps to evaluate and improve the performance on the effective human resources management.
of the employees so that they can give their best to achieve
the goals of the banking sector as well as achieve better It is therefore important to motivate the work force to
career satisfaction. contribute their best which in turn contributes for the
country's economic development. Therefore, it is essential
Retirement Planning - When we reach to the top of the for the banking sector to keep pace with the changes in the
financial policies because only banking sector can help the
ladder a very important role of the human resource is
nation to march ahead.
acknowledged in the recent era that is facilitation in the
retirement planning of the employees. It is well said that
The banking industry is a highly regulated powerhouse that
the human resource department has a very deep stabilizes the economic environment of nations around
accessibility to the employees strength and weakness so, at world. So, human resource department being the backbone
the time retirement it becomes a duty of the human of the banking system is supposed to be the most efficient
resource department to motivate the employees in planning department of the entire system because as we know that
his/her retirement so that they may continue to impart the the strength of the building is judged with its strong
knowledge and skills acquires during the whole service foundation, so subsequently the human resource
tenure to some other organisation being a financial advisor
department of the banking sector should be the strongest
or holding any post.
because right from the recruitment till retirement it is the
human resource of the organisation who is channelizing the
Conclusion manpower to achieve the set target and ultimately the

From the analysis presented on the various function of the organisational goal. The human resource department also
human resource department in the banking sector it may has the responsibilities in maintaining a higher level of
be maintained and concluded that the ability of the banking integrity and trustworthiness within the employees so that
system to perform effectively and in harmony with the everything is running smoothly and with harmony. T

RBI explores the possibility of digital rupee

RBI said it is exploring whether there is a need to issue a digital version of the rupee in the country. "Private digital
currencies have gained popularity in recent years," the central bank said in a booklet on payment systems in India. "In
India, the regulators and governments have been skeptical about these currencies and are apprehensive about the
associated risks. Nevertheless, RBI is exploring the possibility as to whether there is a need for a digital version of fiat
currency and, in case there is, how to operationalize it," it said.
This shows that the central bank has joined the bandwagon of international governments considering digital currencies,
though it is still early days for any such move. The booklet suggests that a digital version of the rupee is one of the
many ways in which RBI is considering to increase the adoption of digital payment systems in India. It also mentions
methods to make digital payments offline via mobile phones through "stored value component on cards".
The Central Bank Digital Currencies is a legal tender and a central bank liability in the digital form, the RBI booklet
noted. "It is in the form of electronic currency, which can be converted or exchanged at par with similarly denominated
cash and traditional central bank deposits," the booklet states. Rapid innovations in the payments sector have prompted
central banks around the world to examine digital routes, RBI noted. As the adoption of cryptocurrencies have grown
worldwide, governments around the world have considered the possibility of issuing their own versions of digital currencies.
Crypto enthusiasts often see this as an effort by central banks to retain control over their sovereign currencies.
"If it is completely controlled by the central authority like RBI, I don't see the advantage of block chain coming there.
Cryptocurrencies are about trust established by people because of people. When it comes to RBI, it is trust established
because of the central authority," said Sathvik Vishwanath, chief executive officer and co-founder of cryptocurrency
exchange Unocoin. Such a move will definitely help the goal of digitization and may also bring some boost to the
cryptocurrency industry in India, he said.

BANKING FINANCE | MARCH | 2021 | 49