UPSC Interview Transcript of IPS Krishan Kumar Singh (AIR 181, 2018)

UPSC Interview Transcript of IPS Krishna Kumar Singh (AIR 181, 2018)

The sun was playing hide and seek with the clouds on the early morning of this 13th of March - the D-day of my years long journey for Civil services examination. I reached Dholpur house (the office of Union Public Service Commission) straight at 8:00 AM, an hour before the actual reporting time. And thus, began the wait. First, to get into the hallowed corridors of UPSC building and then for my turn for the interview. I met a few acquaintances in the meantime, and sharp at 9 AM, the personnel at the gate announced our entry into the building.

I was placed at third in the order of six in my group and so after document verification, each of us shared our anxieties and previous experiences. Around 20 minutes after the second candidate had gone, the peon came with the announcement of my name and so I accompanied him. When I asked him about the board, he smiled, saying “Chalie sir”. He escorted me to Dr. Manoj Soni's room and asked me to wait. Ten minutes later, a bell rang and peon opened the gate, signalling me to come in. I asked may I come in, sir. Dr. Soni, with his elegant smile, said Yes. I greeted all the members and sat down for the interview.

Chairman (Dr. Soni is an erudite gentleman. He was very observant throughout the interview.)

C: How is the morning today, Krishan?

KKS: It is a very pleasant morning today, sir.

C: (smiling) Is it?

KKS: (amused) Yes, sir.

C: (Started reading loud my Detailed Application Form) I can see you have lived in Ghaziabad. Done Computer Engineering. Then worked as a Research Assistant at Delhi School of Economics. So Krishan, what was your role in this study at DSE?

KKS: (I told him about the study, which was over identifying a good teacher in government schools of Delhi and explained my role in field data collection and analysis)

C: You are currently working in RBI and posted at Shimla. The weather must be very good there. Is it still snowing?

KKS: Yes, sir. The weather is generally good. It was snowing till the last week, but now it has subsided.

C: Tell me the historical significance of Shimla?

KKS: Sir, Shimla used to be the summer capital of the erstwhile British Raj. There are numerous historic buildings signifying British architecture. The state also served as the capital of the Punjab state after independence and was made the capital of Himachal Pradesh in 1971.

C: What about the Shimla agreement?

KKS: Sir, the Shimla agreement was signed in 1972 between Madam Indira Gandhi and Zulfikar Ali Bhutto. It basically proclaimed the de-facto position in J&K as the Line of Control (LoC) and both the countries resolved to settle disputes bilaterally.

C: But has the Shimla agreement been upheld in the past years?

KKS: Sir, Pakistan has repeatedly engaged in ceasefire violations, defeating the spirit of Shimla agreement and amicable settlement of LoC. India’s efforts like Lahore bus summit have also gone in vain.

C: Can any provision of international law be used to uphold Shimla agreement?

KKS: (I wasn’t sure on this) Sir, Shimla agreement was a bilateral agreement between India and Pakistan. I am not sure, if there is any explicit provision in international law to uphold the Shimla agreement.

Then he signalled to the next member to ask questions.

Member 1 (Possibly, a retired defense professional. Had a very deep understanding of India’s foreign policy. Also, he was constantly observing my demeanour and hand gestures during the interview)

M1: So you work at Reserve Bank of India. What is your view on demonetisation?

KKS: I feel the decision on demonetisation was taken after considering the larger public interest in mind. The problem of black money, fake Indian currency notes, and terrorist financing remain very pertinent. Having said that, I feel, it could have been implemented in a better way.

M1: But the objectives were not met. All the black money came back into the system. Wasn't it a failure that way?

KKS: Yes, I agree that a good amount of currency came back into the system and the economy couldn’t benefit from the windfall gain which was expected. But on the other hand, we saw augmentation of digital payment architecture. Digital payments help enhance transparency in the system, further reducing the scope for creation of black money.

M1: I feel RBI is not doing much for bank regulation. There is so much NPA in the banking sector and we are seeing new problems like IL&FS and Chanda Kochar’s issue.

KKS: (Now, I hate such questions. It is not easy to defy generalised assumptions while remaining confined to an ordinary discussion. There is no point citing specific cases as regulation is a very broad domain) Sir, in fact, to the contrary, a lot of banks and commentators call RBI as over-regulating. We have one of the most stringent implementation of Basel regulations in the world. RBI has repeatedly resorted to swift enforcement of prudential norms by the banks. Looking ahead, we are integrating technology in bank regulation through a Public Credit Registry. (he nodded and seemed satisfied with the answer)

M1: I can see that your optional subject is Political Science and International relations. Let's come to IR. Do you think India's foreign policy is realist?

KKS: (I took a few seconds to answer this) Sir, India’s foreign policy was highly idealist in the early phase. Gradually, with the unravelling of the new economic policy of 1991, we are witnessing a growing realist outlook. It is the national interest which has become the dominant theme. India is engaging with multiple actors simultaneously. More than moral ideals, economics and security have become the key pillars.

M1: Last question, but be very precise. What do you think - is India a status-quoist power or a revisionist power?

KKS: (took a few seconds and answered with a smile) I would say, somewhere in the middle.

Member 2 (a very soft-spoken lady who asked some traditional questions. No cross-questions.)

M2: Let's come back to RBI's regulation again. You talked about over-regulation by RBI in some cases. I agree with you. What about the recent penalties imposed by RBI on banks? Is it a good thing?
KKS: Ma’am, RBI follows a policy of graded response in its regulation. Initially, we resort to moral suasion and allow banks to do the required course correction. Only when they err in following regulatory directions, we resort to penalties. So, having observed RBI’s regulatory position, I see it as more a part of strategy than routine, as far as penalties are concerned.

M2: We saw the IL&FS troubles. What do you think about the regulation of Non-bank Financial Companies? Should RBI be regulating them?

KS: Ma’am, I believe you are referring to the Justice Srikrishna committee on financial sector legislative reforms. (she nodded) I feel NBFCs are an important part of the financial architecture as they have high credit exposure. In my opinion, RBI being the regulator for financial sector, should be the one regulating the NBFCs, considering various systemic risks in mind.

M2: We read about so many Presidential and Prime-Ministerial visits these days. Do you think these visits really lead to any constructive benefits?

KKS: Yes ma’am, they do. (She asked me to give an example) Let’s take the case of India-Israel. Israel, which is a pioneer in irrigation and drought management technologies is now partnering closely with India to enhance its agricultural productivity.

Member 3 (a grumpy looking fellow who was very stubborn. Now I feel, he was behaving this way deliberately to put me into some stress.)

M3: Tell any 3-4 key successes of India's recent foreign policy

KKS: (I am like, not again) One is the push on strategic autonomy. India is managing very good relations with great powers, keeping its strategic interests in mind. Two, India’s West Asia policy has been very successful. Iran and Saudi Arabia don’t see eye-to-eye with each other. Both of them have issues with Israel. Yet, India has built very strong relations with all of them without getting involved in regional fault lines. Three, there is an increasing push on economics in India’s foreign policy. The best examples are infrastructure projects by Japan and recent push on Regional trade agreements.

M3: What is Cash Reserve Ratio?

KKS: Sir, it is the percentage of Net demand and time liabilities that banks have to keep in their accounts at RBI.

M3: What is one-time settlement of loans? Are there any explicit guidelines by RBI in this regard?

KKS: Through one-time settlement, banks waive off a part of outstanding principal or interest, incentivising the defaulting borrower to pay. RBI does allow the recovery, restructuring, and rectification of accounts. I am not sure, if there are any explicit guidelines on one-time settlement of loans by RBI.

M3: Do you think everything is fine between RBI and government?

KKS: Sir, I feel, across the world, we see some amount of friction between the central banks and the government. It is very natural as RBI and government have different horizons. But the long-term interest remains the same.

M3: What were the recent issues?

KKS: The current friction as reported by the media was largely over three issues - the capital reserves framework of RBI, liquidity problem in the NBFCs, and support to MSME sector.

M3: What about the recent minutes released for RBI board meeting before demonetisation. (Now 2–3 days before my interview, an RTI disclosed the minutes of the meeting on the demonetisation day. I didn’t want to discuss it since it was a controversial issue. But as fate would have it, it ended up becoming a critical point of my interview.)

KKS: Sir, I haven’t read the official RTI reply. As per the media reports, it came out that the RBI board did express its reservations over the demonetisation decision. While the board did express those reservations, it finally went ahead with the decision, considering larger public interest in mind.

M3: Do you agree with the views of your board? (He was forcing me to take a clear Yes/ No view. He kept on repeating the same question and got very loud on the last time)

KKS: (I stuck to my stand) I am sorry sir. The RBI board did express its reservations but in the end, it only went ahead with the demonetisation decision.
(Later, the Chairman asked the member to move ahead)

M3: You read contemporary Indian non-fiction. Which is your favourite non-fiction book?

KKS: Everybody loves a good drought by P. Sainath.

M3: And which is your favourite fiction novel?

KKS: (In hope of initiating some discussion on politics) Sir, i would choose 1984 by George Orwell.

Member 4 (A very competent lady member who asked some very diligent cross-questions. She seemed to have a background in social sector)

M4: Suppose, you are an administrator. How will you boost financial inclusion? (she didn’t know that I worked in the financial inclusion department of RBI)

KKS: There are multiple schemes and institutions working towards financial inclusion in India. But more importantly, we require a push towards financial literacy.

M4: But how to achieve financial literacy? Everyone talks of it, but obviously you understand that there is resource-crunch in administration.

KKS: Ma’am, there are two things. In every village of India, we have schools as well as post-offices. We could make financial literacy a part of school curriculum. At the same time, we can have post-offices provide last-mile connectivity even in isolated areas. With the India post payment bank coming up, we could have postmen serve as Business Correspondents too.

M4: Despite huge potential, why hasn’t the Business Correspondent model picked up?

KKS: At RBI, I had the opportunity of conducting a study on efficacy of BC model in the state of Himachal Pradesh. I was fortunate enough to meet quite a few of them and delve into their issues. The core issue, apart from technical and operational difficulties, is the problem of low remuneration for BC agents. Banks need to see that BC agents are a viable solution as they help reduce their business costs by replacing a brick-and-mortar branch.

M4: So you mean to say that it is doable. (I nodded) Now tell me, why hasn't the MUDRA scheme been a success?

KKS: The MUDRA scheme aimed at providing collateral free loans below Rs. 10 lacs to MSME entrepreneurs. I feel two factors have stymied the growth of the scheme - over & under-financing to MSME entrepreneurs by banks (just to meet their targets) and lack of proper handholding and training provided to entrepreneurs to keep their business sustainable.

M4: You said "Everybody loves a good drought" is your favourite book. What is the core problem that P Sainath tries to identify in the book.

KKS: In the book, P Sainath tries to delve into the problem of an ignorant bureaucracy that forms a nexus with politicians and mafias, depriving people of essential service delivery.

M4: Why is there such huge gap between people and bureaucracy?

KKS: One visible reason is that the field-level functionaries treat them as a class-in-themselves. Instead of “we the people”, as envisaged in our constitution, being the centre of state’s actions,it is the bureaucracy which becomes supreme.

M4: Very true. It is the “Mai-Baap sarkaar” you are referring to. But how will you solve this?

KKS: Ma’am, I believe there is a need to strengthen Panchayati raj Institutions through more funds, functions, and functionaries. (She interrupted, saying that how will “you” solve the problem as an administrator) I believe having the right values can bring wonders in the system. I will try to inculcate the values of inclusivity and compassion in the people I work with. (At that point, I couldn’t recall anything else ;))

M4: I can see you are an optimist

KKS: Yes, ma’am. Thank you.

Chairman:

C: Krishan, thank you. I wish you good luck in your life. Also, when you go back to Shimla, please remember all of us.
Slightly puzzled by his last remark, I thanked him and other members.

Overall, the interview was cordial. One member (M3) tried to put me in some stress. Dr. Soni was attentive throughout the interview but didn't speak much. It was indeed a feeling of contentment and relief as I came out of his room. There were no blunders from my side, yet the unpredictability of the UPSC interview process remained.

Final verdict - 204/275. I am highly grateful to Dr. Soni and certainly, never going to forget him. ;)

Source- Quora