Govt set to begin search for new RBI deputy governor, sources say
Informist, Monday, Oct. 14, 2024
--Sources: Govt set to begin search for a new RBI deputy governor
--Sources: Advt inviting applications for RBI dy governor already prepared
--Sources: RBI to soon float advt inviting applications for deputy governor
By Priyasmita Dutta and Krity Ambey
NEW DELHI – The government is set to begin the search for a new deputy governor of the Reserve Bank of India, multiple people aware of the development told Informist. "Yes, the ad (inviting applications) is prepared. They (RBI) should be floating it soon. That is their call on when to do," a source said on the condition of anonymity.
According to a second person in the know of developments, a notification inviting applications for the position of deputy governor may soon be issued by the finance ministry’s Department of Financial Services. The Indian central bank currently has four deputies to Governor Shaktikanta Das. The four deputy governors are Michael Patra, M. Rajeshwar Rao, T. Rabi Sankar, and Swaminathan J. However, Patra's term is set to end in mid-January. The government had given Patra, first named as deputy governor in January 2020, a second extension of one year in January this year.
M. Rajeshwar Rao was re-appointed as deputy governor for another year earlier last week. Like Patra, Rao also was given a one-year extension in October 2023 after completing three years as a central bank deputy. In April, T. Rabi Sankar--originally named as deputy governor in May 2021--also got a one-year extension. Swaminathan began his three-year term only in June 2023.
The appointment of a new deputy governor could be crucial given that Governor Shaktikanta Das' second three-year term is ending on Dec. 9, just a couple of days after the Monetary Policy Committee's interest rate decision is announced.
Patra, who is also a member of the MPC on account of being the deputy governor in charge of the monetary policy department, has been one of the three representatives of the RBI ever since the rate-setting panel came into being in October 2016. Before his elevation to the post of deputy governor, Patra was a member of the committee as an officer of the central bank nominated by its Central Board of Directors.
According to another person in the know, while the RBI may soon begin search for a new deputy governor, a third extension to Patra is also likely. "There is also a thinking that Michael Patra can serve for a third term," the person said.
The MPC recently got three new external members after the four-year terms of Ashima Goyal, Shashanka Bhide, and Jayanth Varma ended earlier this month.
The RBI has previously functioned temporarily with three deputy governors, with the portfolio of the fourth deputy being re-allocated to the others. Further, as per law, the MPC can meet as long as four members are present. However, it cannot meet with four members if both the governor as well as deputy governor are absent. End
