Raghuram Rajan-led panel to shortlist 3 EDs for Deputy Governor as HR Khan’s term nears end

MUMBAI: Amid rising speculation on Raghuram Rajan’s second term, the government has begun the process for the appointment of a new deputy governor at the Reserve Bank of India as the incumbent HR Khan is due to retire on July 7 after attaining 62-years of age.

A high powered panel under the chairmanship of governor Raghuram Rajan will interview RBI’s about eight to 11executive directors on June 6 to select the successor of Khan, two people with the direct knowledge of the matter told ET. All the executive directors are eligible for the selection.

An email sent to RBI seeking comments on the matter remains unanswered till the time of writing this article. The panel will recommend three names to the finance ministry, which will take the final call, they said.

NS Vishwanathan, Chandan Sinha, MD Patra are some of the potential candidates for the selection of the new deputy governor. But, the seniority is not going to be the only criterion, efficiency parameter too will play a big role. For the last two appointments of deputy governors — HR Khan and R Gandhi — merit rather than seniority has been the criteria.

In fact, Khan was the junior-most executive director who was picked up by the committee headed by then RBI governor Subbarao. Similarly Gandhi was number two in the seniority ladder. RBI has four deputy governors out of which two are appointed from the internal candidates of the banking regulator. The other two posts are occupied by a senior public sector bankers and an eminent economist.

There are a total of 11 deputy governors, according to the Reserve Bank website.

Khan now looks after 10 portfolios/departments including financial markets regulations, forex, internal debt management, external investments, payment and settlement systems. The selection interview also puts an end to speculation that Khan might be getting another extension beyond 62. Recently Patel was reappointed as the deputy governor for three years.