Jalan may leave RBI post, Reddy Kelkar, Narayan in race for chair

“Jalan is likely to be nominated to the Rajya Sabha by the President,” the source, who spoke on condition of anonymity, told Reuters. “He may move out by next month.” A spokeswoman for the central bank said, “We have no information about this.”

Analysts, who have speculated about Jalan’s departure, said the move could aim to groom him for a cabinet position if the ruling BJP is voted back to power. His tenure at the central bank had been due to end late in 2004. Before becoming the RBI Governor, Jalan was a Member of the Planning Commission. He also served as Finance Secretary during the V.P. Singh tenure as PM.

An economist by profession, Jalan, 62, had worked as executive director representing India on IMF and World Bank boards. He took over the reins of the RBI in November 1997 at the height of the Asian financial crisis. Another former Reserve Bank governor, Manmohan Singh, also became a member of the upper house of Parliament before becoming Finance Minister and launching India’s economic reforms in 1991. India’s Constitution gives the President the power to nominate 12 prominent citizens who have special knowledge or practical experience in the fields of literature, science, arts and social service to the upper house of Parliament.