Mumbai: A day after Reserve Bank of India (RBI) deputy governor Rakesh Mohan stepped down and ahead of K.C. Chakrabarty taking over as new deputy governor next week, RBI governor D. Subbarao on Thursday reshuffled the portfolios of deputy governors. Mohan quit the central bank eight months ahead of his retirement.
Subbarao has retained the monetary policy department, department of economic analysis and policy, and department of statistics and information management with himself for the time being until the government appoints the fourth deputy governor. Mohan was in charge of these departments.
Traditionally, RBI has four deputy governors.
Currently, however, there are only two of them—Usha Thorat and Shyamala Gopinath. Chakrabarty, chairman and managing director (CMD) of Punjab National Bank, who is replacing V. Leeladhar, will assume charge as the third RBI deputy governor on 15 June. Leeladhar retired in December 2008.
“Department of economic analysis and policy, department of statistics and information management and monetary policy department will put up their important and urgent matters to the governor till further orders,” said the office order signed by Subbarao.
Chakrabarty has been allotted the customer service department, department of administration and personnel management, information technology, payment and settlement systems, human resources development, rural planning and credit department, and urban banks department.
Leeladhar, his predecessor and a commercial banker, was looking after banking operations and development, and the department of banking supervision.
These critical departments have been handled by Thorat since Leeladhar’s departure and she will continue to do so.
Rural planning and credit department and urban banks department, too, were handled by Thorat, but these departments are now going to Chakrabarty.
Thorat has retained the department of banking operations and development and banking supervision, apart from currency management and a few others.
Gopinath will hold key departments such as financial markets, foreign exchange and internal debt management.
The government took six months to identify Leeladhar’s successor and it has not yet set up any committee to look for Mohan’s replacement.
Arvind Virmani, chief economic adviser to the finance ministry, and Asian Development Bank executive director Ashok Kumar Lahiri are two strong contenders for the post, said an RBI executive who did want to be identified.
Raghuram Rajan, honorary economic adviser to Prime Minister Manmohan Singh, could also be a contender.
The CMD post at Punjab National Bank will fall vacant once Chakrabarty moves to RBI. According to a senior Mumbai-based public sector bank official, Punjab and Sind Bank chairman and managing director R.P. Singh could be considered for the post. The other contenders are Alok Misra, chief of Oriental Bank of Commerce, and S.K. Goel of Kolkata-based UCO Bank.