Raghuram Rajan’s successor may be announced by PM Narendra Modi-led NDA government as early as July 15, suggest TV reports. RBI’s new governor will be picked by PM Modi after talks with Finance Minister Arun Jaitley.
The government has narrowed the list of top contenders for the post to four. The four are current RBI Deputy Governor Urjit Patel, former deputy governors Rakesh Mohan and Subir Gokarn, and State Bank of India Chair Arundhati Bhattacharya.
Meanwhile, in sweeping changes, a broad-based 6-member panel — the Monetary Policy Committee (MPC) — is being set up to decide on lending rates instead of the present practice of RBI Governor taking a call in this regard.
Raghuram Rajan today called on FM Arun Jaitley as the central bank and the government seek to quickly put in place the new interest rate-setting mechanism.
Earlier this month, Rajan said no to a second term putting at rest all speculation over his continuance. “… on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016,” Rajan said in a message to the RBI staff.
In his letter to colleagues, Rajan, appointed by the previous UPA Government in September 2013, said he “will, of course, always be available to serve my country when needed”.