Centre may name Raghuram Rajan’s successor after PM Modi’s Africa tour

Rajan, who will have the shortest tenure as RBI Governor since liberalisation began in 1991, will be returning to academia after the end of his term.

By: ENS Economic Bureau | New Delhi | Published:July 6, 2016 3:55 am
Prime Minister Narendra Modi and RBI Governor Raghuram Rajan in this combination image. Prime Minister Narendra Modi and RBI Governor Raghuram Rajan in this combination image.

The government is likely to announce the name of new Reserve Bank of India Governor after Prime Minister Narendra Modi returns from his Africa tour, a top government official said on Tuesday.

“There are many ongoing consultations with the PM right now. After he comes back from his tour, the name of RBI Governor will be announced,” the official said.

Modi is going on a five-day Africa tour of Mozambique, South Africa, Tanzania and Kenya from July 7. RBI Governor Raghuram Rajan’s three-year term as RBI Governor will come to an end on September 4. Last month, he announced his decision to not continue for the second term.

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The possible list of Rajan’s successors includes former deputy governors of the RBI Subir Gokarn and Rakesh Mohan. Gokarn is currently Executive Director at the International Monetary Fund, a post previously held by Mohan.

Other contenders for the post include government’s Chief Economic Adviser Arvind Subramanian and RBI Deputy Governor Urjit Patel.

The Prime Minister will select RBI Governor after consultation with Finance Minister Arun Jaitley. Since the selection of new RBI Governor is likely to be done before Rajan’s exit, his successor is likely to be appointed as an Officer on Special Duty in the central bank, the same way as Rajan took over from his predecessor D Subbarao.

Rajan, who will have the shortest tenure as RBI Governor since liberalisation began in 1991, will be returning to academia after the end of his term.

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