RBI Governor approved by PMO: Government

RBI Governor approved by PMO: Government
The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai October 29, 2013. India's central bank raised its policy interest rate for the second time in as many months on Tuesday, warning that inflation is likely to remain elevated for the rest of the fiscal year, and rolled back an emergency measure put in place in July to support the slumping rupee. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS POLITICS LOGO)

New Delhi: The Reserve Bank of India Governor is appointed by the Prime Minister’s Office on the Finance Minister’s recommendation, parliament was told on Tuesday.

“The appointment of Governor, Reserve Bank of India is approved by Prime Minister’s Office on the recommendations of Finance Minister,” Minister of State for Finance Santosh Kumar Gangwar told the Rajya Sabha in a written reply.

Deputy Governors are appointed on the basis of Appointments Committee of the Cabinet (ACC) approved guidelines, which provides that Search Committee constituted for the purpose will recommend the person for the post but the composition of the Search Committee has now been changed, he said.

“Now, a Search Committee namely, Financial Sector Regulatory Appointments Search Committee (FSRASC) has been constituted with the approval of ACC. The Committee will recommend names for appointment of Chairperson and Members of Financial Sector Regulatory Bodies including those of Governor and Deputy Governors,” he said.

The query came against the backdrop of the government close to announcing a successor to RBI Governor Raghuram Rajan, whose term comes to an end on September 4 and has ruled out another one.