RBI kicks off search for Thorat’s successor

RBI kicks off search for Thorat’s successor

Mumbai: The Reserve Bank of India (RBI) will have a new deputy governor by the end this year.

Usha Thorat, RBI’s deputy governor in charge of critical departments such as banking operations and development and supervision among others will retire in November. Till recently there was speculation that she would get an extension. But now it seems that she will retire and a new deputy governor will be selected among the seven executive directors of the central bank.

The RBI top brass discussed this on Tuesday V.K. Sharma is the seniormost executive director.

People familiar with the development said all seven executive directors will be interviewed to select Thorat’s successor

Going by the norms, all eligible candidates need to be less than 60-year of age and the term of a deputy governor is for three years. On expiry of the first term one can be get a reappointed if one has not reached 60.

Shyamla Gopinath, senior most deputy governor of RBI, will retire in May 2011

RBI governor D. Subbarao’s three-year term will come to an end in September 2011.

Historically, many RBI governors have got extensions. K.C. Chakrabarty and Subir Gokarn are the other two deputy governors.

Typically RBI has four deputy governors, two of them are internal candidates and a commercial banker and an economist complete the quarter.