Ending speculations, Anand Sinha, 59, executive director (ED) has finally been elevated to the rank of the deputy governor of the Reserve Bank of India.
The finance ministry notified Sinha?s appointment on Tuesday. Sinha who would have retired as ED after reaching 60 by February-end has been given two years extension as the deputy governor.
Speaking to The Financial Express Sinha confirmed that he had received the appointment letter on Tuesday evening. ?I will take over the new charge on Wednesday,? he said.
After Sinha?s appointment, the Reserve Bank of India is expected to announce reshuffle of departments among the deputy governors.
Sinha, who has managed some of the most important departments like banking operations and supervision and helped in shaping the paper on entry norms for new private and foreign banks, will be replacing Usha Thorat who retired in November 2010.
Thorat had to retire as she was denied two year extension (beyond 60) which has been given to some of her predecessors. However Thorat had completed a five-year tenure as a deputy governor when she retired.
Sinha will be the fourth deputy governor at RBI, joining Shyamala Gopinath, KC Chakrabarti and Subir Gokarn. The normal practice is to appoint two deputy governors from within the central bank, besides a banker and an economist who are appointed from outside.
Gopinath who is on a two year extension will also be calling it a day after reaching 62in June. The MoF is expected to start looking for Gopinath?s successor soon.
Earlier a search committee, comprising RBI governor D Subbarao, financial services secretary R Gopalan and National Institute of Public Finance and Policy director Govind Rao, had interviewed six executive directors from RBI and selected Sinha and slotted another ED HR Khan next to Sinha. However same search committee is expected to undertake the exercise all over again, said sources.