Raghuram Rajan to be officer on special duty at RBI for 3 weeks
Rajan’s appointment will provide an overlap with current governor Subbarao who is slated to retire on 4 Sept
The government has appointed Raghuram Rajan as an officer on special duty (OSD) at the Reserve Bank of India (RBI) in the run-up to his taking over as governor on 5 September. This has been done “to provide an overlap" with current governor D. Subbarao who is slated to retire on 4 September, according to a government notification.
The notification, dated 7 August, said Rajan has been appointed for three weeks ahead of his formal takeover as governor.
This is the first time that a governor-elect has come to RBI as an OSD ahead of his term.
The United Progressive Alliance government has started this practice in public sector banks by sending the chairmen and executive directors ahead of their terms to banks where they are appointed to make them familiar with the institutions.
The same practice was followed when Rajiv Takru was appointed as secretary of financial services at the ministry of finance. He formally took over the assignment on 1 February after D.K. Mittal stepped down, but ahead of that for a fortnight was an OSD there.
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