In a report on the RBI deputy governor’s appointment, it is stated that: “Though there was no norm on how many deputy governors can be chosen from RBI internally, the practice usually followed is to have at least two from within the central bank”(“RBI may get new deputy governor in Nov”, August 26).
According to the norm established in the 1980s, of the four deputy governors, one each would be from the Indian Administrative Service (IAS), the banking sector, economics profession and the central bank. When the governor himself was from the IAS, the RBI got an additional post. Hence it is appropriate for the government to appoint a new deputy governor from the RBI since the current governor is from the IAS. If it were the case, will the search committee consider candidates only from the central bank? What is the need for this when the governor knows the quality and competence of the executive directors working under him?
A Seshan, on email
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