New Delhi: Ending speculations, the government hsa appointed Finance Secretary Duvuri Subbarao as the next RBI Governor whose foremost task would be containing inflation which is ruling over 12%.
Subbarao succeeds Y V Reddy as the 22nd Governor of the central bank.
Announcing the decision, Finance Minister P Chidambaram said: “The order of appointment has been issued. He will assume office when Reddy demits office on 5 September.”
“Subbarao would be appointed for a period of three years,” Chidambaram said, adding the Act allows appointment for up to five years. The Finance Minister added that he (Subbarao) would be eligible for reappointment.
Reddy, who has taken various monetary measures to control spiralling prices, will be relinquishing office after completing five eventful years as head of the country’s central bank.
An alumni of IIT Kanpur, Subbarao topped the Civil Services Examination in 1972 and was assigned the Andhra Pradesh cadre.
He was elevated to Finance Secretary in May 2007 when he was Secretary, Department of Economic Affairs. He has also served as Secretary in Economic Advisory Council of the Prime Minister.
Earlier, he was lead economist in World Bank and had worked on various issues in public finance in countries of Africa and East Asia.
Subbarao did his MS in Economics from Ohio State University and was a Humphrey Fellow at MIT. He completed his Phd in Economics from Andhra University.
Chidambaram said: “The government takes this opportunity to place on record its deep appreciation to the services rendered by Y V Reddy firstly as Deputy Governor and then as Governor”.
“His stewardship as the Governor of RBI saw some very major changes and improvement,” he noted.
“He headed RBI with distinction through period of change and rapid growth. We warmly thank him for his services,” Chidambaram added.