With reference to Aditi Phadnis' report, "Three-year term too short for RBI governor: Rajan" (July 2), I have to admit that of the 23 people who have held the post since the inception of the Reserve Bank of India 81 years ago, 13 were appointed for an initial period of five years - the maximum permissible period under the RBI Act.
Of the remaining 10 - leaving aside the five, who were acting governors for a few months (in one case, for 20 days only) pending takeover by the regular appointee - only five were appointed initially for a period of less than five years. They were Osborne Smith, the first governor (an Australian national) who was appointed in 1935 for three and a half years (he had earlier been one of the managing governors of the Imperial Bank); K R Puri, (having only an insurance background) appointed during the Emergency in 1975 initially for one year; S Venkitaramanan, appointed in 1990 for two years; Duvvuri Subbarao, appointed in 2008 for three years which was later extended by two years ( making his term five years); and the incumbent, Raghuram Rajan, appointed in 2013 for three years.
Of the 13, who were appointed for five years, seven were given extensions beyond their initial terms. However, three of them left before the expiry of their five-year terms to take up other appointments.
It is time the five-year term is adhered to as a norm again.
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Of the remaining 10 - leaving aside the five, who were acting governors for a few months (in one case, for 20 days only) pending takeover by the regular appointee - only five were appointed initially for a period of less than five years. They were Osborne Smith, the first governor (an Australian national) who was appointed in 1935 for three and a half years (he had earlier been one of the managing governors of the Imperial Bank); K R Puri, (having only an insurance background) appointed during the Emergency in 1975 initially for one year; S Venkitaramanan, appointed in 1990 for two years; Duvvuri Subbarao, appointed in 2008 for three years which was later extended by two years ( making his term five years); and the incumbent, Raghuram Rajan, appointed in 2013 for three years.
Of the 13, who were appointed for five years, seven were given extensions beyond their initial terms. However, three of them left before the expiry of their five-year terms to take up other appointments.
It is time the five-year term is adhered to as a norm again.
R C Mody, New Delhi
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number