 "Arun Jaitley")
Finance Minister Arun Jaitley on Thursday held an hour-long discussion with Prime Minister Narendra Modi over the appointment of the new Reserve Bank of India (RBI) governor, a post that will fall vacant on September 4.
The meeting, which took place at the PM’s residence here, is believed to have deliberated on names of persons who could succeed Raghuram Rajan, who demits office on completion of his 3-year tenure.
Asked about the announcement, Jaitley said: “We will let you know when we decide. You will come to know about the conclusion, not the process.”
Traditionally, the Prime Minister picks the RBI Governor after consultation with the finance minister.
In June, Rajan surprised the markets when he, in a letter to the RBI staff, announced that he would return to academia and not seek a second term.
Top contenders for the post are current Deputy Governor Urjit Patel and former deputy governor Subir Gokarn.
Gokarn is currently an executive director at the International Monetary Fund while Patel was given a three-year extension in January.
Others who are said to be in the fray include World Bank Chief Economist Kaushik Basu, Economic Affairs Secretary Shaktikanta Das, State Bank of India Chairman Arundhati Bhattacharya and Chief Economic Advisor Arvind Subramanian.
Rajan, who will have the shortest tenure as RBI governor since liberalisation began, decided not to seek a second term after unbridled political attacks on him were led by Bharatiya Janata Party MP Subramanian Swamy.
