For the first time, the Government is likely to appoint a senior bureaucrat soon for the Reserve Bank of India (RBI) Deputy Governor as two shortlisted candidates senior IAS officer TV Somanathan and IDBI Bank Chief MK Jain are learnt to be frontrunners for the prestigious post. Cabinet Secretary-headed panel has already shortlisted them for the coveted post out of 9 candidates interviewed on Thursday, sources privy to the development told The Pioneer.
“Somanathan who is Principal Secretary in Tamil Nadu Government is leant to have not applied for the post but on the search panel's invitation he appeared for the interview on May 10. However, the search committee claimed that any eligible candidate can be invited for the interview at the panel's discretion if it finds him/her worthy for the post,” sources added.
Besides Somanathan, there is a widespread speculation that IDBI Bank Chief MK Jain may also get the Deputy Governor chair as per RBI rules. As per the RBI Act, the central bank should have four Deputy Governors two from within the ranks, a commercial banker and an economist to head the monetary policy department.
“As Deputy Governor SS Mundra's retired in July last year, creating the vacancy for the commercial banker's slot, Jain is fit for the position. But it is, however, learnt that Prime Minister Narendra Modi is very keen to offer opportunity to senior bureaucrats for some key positions in the financial regulatory institutions like Sebi, RBI, IRDAI and others,” sources said.
Recently, a senior bureaucrat and former Chief Secretary of Karnataka Subhash Chandra Khuntia was appointed as the new Chairman of Insurance Regulatory Development Authority of India (IRDAI) for three-years. Khuntia will succeed TS Vijayan, who completed his five-year term in February.
On May 10, the search panel interviewed three senior bureaucrats and six bankers for the post of RBI Deputy Governor which fell vacant in July last after Mundra retired on completion of his three-year term. “Some of the bankers who appeared for the interview included IDBI Bank managing director M K Jain, UCO Bank executive director Charan Singh and SBI Managing Directors B Sriram and P K Gupta. Besides, KP Krishnan, Secretary Skill Development and Entrepreneurship, Yaduvendra Mathur Additional Secretary NITI Aayog and T V Somanathan, Principal Secretary in Tamil Nadu also appeared for the interview before Financial Sector Regulatory Appointment Search Committee (FSRASC),” sources said.
Although the same interviews were conducted on July 29 last year, the Government decided to start the process all over again in January this year. According to the Finance Ministry's notification earlier this year, applicants should have at least 15 years of experience in banking and financial market operations. “Besides, applicants should have extensive experience as a full-time director or board member and possess understanding at a very senior level, of supervision and compliance in the financial sector,” it had said.