Did you know? This is how RBI Governor is appointed!
With RBI Governor Raghuram Rajan making it clear that he is not game for second term as the head of the central bank, many names have make it to the list as to who will replace him at the helm.
Zee Media Bureau
New Delhi: With RBI Governor Raghuram Rajan making it clear that he is not game for second term as the head of the central bank, many names have make it to the list as to who will replace him at the helm.
However, while speculations are doing the rounds as who will be the next RBI Governor, have you ever wondered as one is selected/elected to the post.
Well, the Reserve Bank of India Governor is appointed by the Prime Minister`s Office on the Finance Minister`s recommendation.
Replying to a question in the Rajya Sabha, Minister of State for Finance Santosh Kumar Gangwar told the house in the written reply that the RBI Governor is approved by the PRMO on the recommendations of Finance Minister.
"The appointment of Governor, Reserve Bank of India is approved by Prime Minister`s Office on the recommendations of Finance Minister," Gangwar sais in the 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.
With Agency Inputs