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Arun Jaitley, PM Modi shortlist names for RBI Governor; announcement soon

Finance Minister Arun Jaitley yesterday held an hour-long discussion with Prime Minister Narendra Modi over appointment of new RBI Governor, a post that will fall vacant on September 4.
India TV Business Desk New Delhi August 19, 2016 14:21 IST
India TV Business Desk

Finance Minister Arun Jaitley yesterday held an hour-long discussion with Prime Minister Narendra Modi over appointment of new RBI Governor, a post that will fall vacant on September 4.

The high-profile meeting, which took place at the Prime Minister's residence here, is believed to have deliberated on various names who could succeed Raghuram Rajan, who demits office early next month on completion of his 3-year tenure.

According to report, the two shortlisted a few names for the 24th Governor of the Reserve Bank of India in first round of discussions.

Those in the reckoning include former RBI deputy governor Subir Gokarn, current deputy governor Urjit Patel and Chief Economic Adviser Arvind Subramanian.

Gokarn is currently an Executive Director at the International Monetary Fund while Patel was given a 3-year extension as RBI Deputy Governor in January.

Others who are said to be in the fray include Niti Aayog Vice-Chairman Arvind Panagariya, Department of Economic Affairs Secretary Shaktikanta Das, SBI Chairman Arundhati Bhattacharya, former World Bank chief economist Kaushik Basu and former chief economic adviser Ashok Lahiri.

Asked about the announcement of next Governor, Finance Minister Arun Jaitley said, "We will let you know when we decide. You will come to know about the conclusion, not the process."

As per the RBI Act, the Central Government appoints the RBI Governor. The Prime Minister picks the Governor in consultation with the Finance minister.

The government is likely to announce the new governor’s name very soon as the new person RBI before the incumbent moves on. Rajan had joined as officer on special duty almost three weeks before taking charge from predecessor D Subbarao.

Rajan, who will have the shortest tenure as RBI Governor since liberalisation began in 1991, decided not to seek a second term after unbridled political attacks on him were led by BJP MP Subramanian Swamy.