Asks deputy governors to give choice of portfolios after Thorat’s retirement.
The Reserve Bank of India (RBI) has started the process to re-shuffle the portfolios of deputy governors following vacancy arising out of the retirement of Usha Thorat last week.
Portfolios of some executive directors (EDs) will also be re-distributed after a new ED is selected. The interviews were held earlier this month. An ED will be promoted as deputy governor to take the place vacated by Thorat.
The central bank has asked deputy governors to give their choice. However, it is not clear when will the re-allocation be done. Sources said RBI was not sure when the government would appoint a new deputy governor. It is also not also clear if RBI will re-allocate portfolios among the three deputy governors if the government delays the appointment or wait till the appointment is made.
In the interim, Shyamala Gopinath is looking after Thorat’s departments. Thorat was in charge of banking operations and development, banking supervision, currency management, and expenditure and budgetary control, among others.
Among the three deputy governors, Shyamala Gopinath is looking after 19 departments (including nine of Usha Thorat) while Subir Gokarn and KC Chakrabarty are handling seven and four departments, respectively.
The skewed distribution is mainly because in early August, RBI took half the portfolios of Chakrabarty and distributed among the other three.
The delay in not new. In September, a search committee was formed to select Thorat’s successor. Six EDs were interviewed. The committee recommended Anand Sinha and HR Khan’s name to the government.
Sources say there is possibility of a delay as a section in the government feels that VK Sharma, the senior-most ED, should have been considered for the job.
In 2009, after deputy governor Rakesh Mohan quit RBI, and KC Chakrabarty took charge as V Leeladhar’s replacement — both happened almost during the same time — portfolios were re-allocated among the three deputy governors, except three departments, including the all-important monetary policy department. Governor D Subbarao took charge of the three departments till Subir Gokarn joined as Mohan’s replacement.
In recent past too, there have been instances of delays. When V Leeladhar retired in December from the deputy governor’s post, the government took more than six months to fill the vacancy. Chakrabarty came in place of Leeladhar in June 2009. Similarly, Rakesh Mohan quit RBI in June 2009 and his replacement, Subir Gokarn, joined only in November.
