Sudha Balakrishnan has been appointed as the first Chief Financial Officer (CFO) of the Reserve Bank of India.
Balakrishnan, chartered accountant and vice-president of NSDL, will hold the rank of executive director. While inviting applications for the newly created post in May last year, the RBI had said that the CFO will be responsible for reporting of financial information of the central bank, establishing accounting policies and ensuring compliance with regulations.
The CFO, the RBI had said, will also formulate the accounting policy of the bank, maintain the internal accounts and report financial results, and carry out corporate strategy functions like PF policies. Other responsibilities include overseeing the budget process, collecting of inputs and comparing the Bank’s actual performance vis-à-vis the budget estimates, flagging risks to the finances — operational, market etc. And developing strategies to counter/ mitigate the same. CFO will have oversight of three departments.
The CFO will also be entrusted with communicating the RBI’s expected and actual financial performance. Till now, the RBI did not have a dedicated official handling the finance function, and the tasks were being carried out internally. RBI Governor Urjit Patel’s predecessor Raghuram Rajan had pursued an idea of creating a chief operating officer but the government shot down the proposal as it involved changing the RBI Act. Rajan had also hired a slew of specialists from outside.