Govt likely to announce Raghuram Rajan's successor this week

Zee Media Bureau

New Delhi: Prime Minister Narendra Modi is likely to announce the successor of out-going RBI Governor Raghuram Rajan later this week.

Earlier last week, prior to his departure to Africa for a four-nation five-day tour, it was reported that he would announce the new RBI Governor upon his return from the trip.

"A new governor will be named after Prime Minister returns from his Africa tour on July 11," an official had said.

This also comes true with the latest reports that Arvind Panagariya, the policy adviser to Prime Minister Narendra Modi could be named the successor of Raghuram Rajan as the next Governor of Reserve Bank of India later this week.

Though both the PMO and Panagariya's office declined to comments, media reports suggest that an official announcement could be made in the next 48 hours.

Rajan's three-year term will come to an end on September 4, as he last month announced that he would return to academia and not seek a second term.

And while Arvind Panagariya is likely to be the next RBI Governor, top contenders for the post include former deputy governors of the Reserve Bank of India Subir Gokarn and Rakesh Mohan.

Others who are said to be in the fray for job include SBI chief Arundhati Bhattacharya and Economic Affairs Secretary Shaktikanta Das.

Government's Chief Economic Adviser Arvind Subramanian and the RBI's current Deputy Governor Urjit Patel are also considered to be in reckoning.

Incidentally, Patel got a three-year extension as RBI Deputy Governor in January.

Traditionally, Prime Minister picks the RBI Governor after consultation with the finance minister. The same process is likely to be followed this time around with Modi choosing Rajan's successor after consulting Arun Jaitley.

With Agency Inputs