RBI Governor
Warrier's view
Last year’s developments which saw
easing out of a Deputy Governor (Subir Gokarn) for no fault of his and
compulsions to retain another Deputy Governor for another year calls for a
review of the selection and placement procedure at that level and at the level
of Governor. Perhaps the pool from which selection is made and the age profile
(raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62
years) need a review. In the circumstances, it would be most appropriate to
extend the tenure of Governor Dr Subbarao who is to retire within months,
initially by another year at this juncture, and leave it to the post-General
Election team in New Delhi to decide on the next Governor.
Formulating and implementing
succession plans for top government/public sector jobs with professionalism and
efficiency in a graceful manner is imperative for allowing the institutions to
function with reasonable functional autonomy within the legislative mandates.
Another point is that it will be
next to impossible to attract talent to these government positions, given the
meager remuneration offered. It is time to revise this, factoring in market
realities. The present practice has resulted in compromises on quality and the
nation can ill-afford this state of affairs.
M G Warrier
July 14, 2013
Race to succeed D Subbarao: Meet the contenders for RBI governor’s post
By Shantanu
Nandan Sharma, ET Bureau | 14 Jul, 2013, 06.26AM IST
Editor's Pick
ET SPECIAL:
In choosing its man for
And quite a few, like Bimal Jalan, RN Malhotra and Reddy, had stints representing India at the Bretton Woods institutions — theWorld Bank and the International Monetary Fund — before picking up the reins at India's central bank. Come September 5, a new governor will take charge of the RBI — unless Subbarao gets an extension. That won't be unusual. In Independent India, Malhotra, Jalan, Benegal Rama Rao and PC Bhattacharya were the only governors whose term was extended beyond five years.
As D-day approaches, the corridors of the finance ministry on Raisina Hill in the capital are buzzing with names of who could be the best candidate to extricate the economy from its precarious perch. The names doing the rounds include chief economic adviser (CEA)Raghuram Rajan, Planning Commission member Saumitra Chaudhuri, department of economic affairs (DEA) secretary Arvind Mayaram and revenue secretary Sumit Bose.
Rules and Files
"I wouldn't know who will become the next RBI governor. My understanding is that the prime minister will take inputs from [finance minister] P Chidambaram before taking the final call," says JD Seelam, the newly appointed minister of state for finance. The government has the flexibility of appointing the governor from a vast pool of economists, academics, bureaucrats and bankers. But that in a way adds to the confusion. Technically, the government does not even need to take the route of the Appointments Committee of the Cabinet (ACC) to select the RBI governor.
"It's a post-retirement assignment. The finance minister will consult the PM first and send one or more names to him in writing. And the PM will finally decide," says a former secretary of the department of personnel and training (DoPT). A former finance ministry official who was aware of the developments leading to Subbarao's selection five years ago says the PM often takes inputs from the outgoing governor, too.
On the other hand, if the appointment is routed through the ACC, which is done in case of selection of deputy governors of the RBI, the establishment officer of the DoPT recommends three names to the panel. The panel headed by the prime minister finally picks up one name for appointment.
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Raghuram Rajan, 50 Chief Economic Adviser, GoI In Favour: Being a former IMF chief economist, has a global economic perspective; excellent working relations with FM Against: New to the government; not quite succeeded in tackling growth slide, rupeetumble Our Take: FM will push his case only if he is absolutely sure Rajan won't use the new-found freedom on Mint Street to stand up against the government |
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Saumitra Chaudhuri, 59 Member, Planning Commission In Favour: An economist by training, Chaudhuri is an expert on industry, financial sector & fiscal policy; is backed by Montek Singh Ahluwalia Against: Unlike Rajan, won't be a heavyweight on Mint Road; may not echo North Block's voice Our Take: If picked, the FM's core economy team comprising Rajan & Mayaram need not be changed |
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Arvind Mayaram, 58 Secretary, Department of Economic Affairs In Favour: Has had a long tenure at the finance ministry and is Chidambaram's confidant; IAS lobby may like to see yet another officer of their cadre in the governor's post Against: Has become the government's pointsperson to woo foreign money; FM may prefer to have him around in North Block itself Our Take: Has a chance to move to Mumbai if PM and FM are absolutely sure that a friendly Central bank is a must to boost economic policies in an election year |
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D Subbarao, 63 Governor, RBI In Favour: Continuity by giving the incumbent an extension for six months or a year is an option. Former governors RN Malhotra and Bimal Jalan were at the helm for almost six years each Against: An ideal central bank governor who keeps his cards close to his chest. Forget influencing him, North Block often fails to read his mind Our Take: If the government has someone in mind who can't be spared now, it may go for Subbarao's continuity and engineer the changes only early next year |
Readers' opinions (5)
1 Minute ago
Last yearâ??s
developments which saw easing out of a Deputy Governor (Subir Gokarn) for no
fault of his and compulsions to retain another Deputy Governor for another year
calls for a review of the selection and placement procedure at that level and
at the level of Governor. Perhaps the pool from which selection is made and the
age profile (raising the upper age limit by 3 to 5 years from the present
â??normalâ?? at 62 years) need a review. In the circumstances, it would be most
appropriate to extend the tenure of Governor Dr Subbarao who is to retire
within months, initially by another year at this juncture, and leave it to the
post-General Election team in New
Delhi
Avis (TN)
5 Followers
Silver: 3468
Though we need a new blood and fresh
thinking, looks like the present Government will continue with the present
configuration.
Krishan Kumar Totlani (Jaipur)
The government is likely
to extend Yaga Venugopal Reddy's tenure by a year and let the new government
post-elections take a call on appointing a new governor at the Reserve Bank of
India (RBI). The five-year term of Reddy, who took charge as RBI governor on
September 6, 2003, ends less than two months from now on September 5.Going by
the reports in various media Rajan is likely to get the job if extention is not
given to present GUV.
Krishan Kumar Totlani (Jaipur) Replies To Krishan Kumar Totlani
Please read D.Subbarao in place of Y V
REDDY.
Kiran Kanchibhotla (Hyderabad
20 Followers
Extend Mr Rao for
another year and then go with Mr Chaudhuri.
Comments