Following the resignation of Viral Acharya as RBI Deputy Governor six months before his tenure ends, the Centre and the Reserve Bank of India will set up a selection panel after the Budget to look for his replacement.
Prior to Acharya, the post was held by Urjit Patel who later became RBI Governor. Sanyal was Deutsche Bank AG’s global strategist in Singapore until 2015. Sources said selection is not on nomination basis so it all depends on who are shortlisted once the post is advertised and it will be open to all eligible candidates including economists, top bankers, ex-bankers, bureaucrats and also from RBI’s own top management.
Sources said the applicant has to have the skills to head the RBI’s monetary policy and research departments which Acharya was heading. The central board of directors is the main committee of the central bank. The government of India appoints the directors for a four-year term.
The board consists of a Governor, and not more than four Deputy Governors and four directors to represent the regional boards and the Economic Affairs Secretary and the Financial Services Secretary from the Ministry of Finance and 10 other directors from various fields.
The RBI “under Raghuram Rajan’s governorship” wanted to create a post of a Chief Operating Officer (COO), with the rank of Deputy Governor, and wanted to re-allocate work between the five of them (four deputy governors and COO).