Rajan feels he and bankers are underpaid to an extent

Expressing concern over the difficulties in getting the best talent for public sector banks, RBI governor Raghuram Rajan said one of the problems is that all public sector entities across the world tend to pay more than the private sector to lower level employees, and less than the private sector to higher level employees.

“I’m sure all of you feel underpaid,” he said to his audience of bankers attending the banking conference. “I too feel underpaid. (Rajan took home Rs 1,98,700 for the month of July 2016.) This makes it hard for them to attract top talent, but makes it easier to attract good people at lower levels.” He suggested that banks follow RBI’s compensation system to attract applicants.