Business Other News 18 Aug 2016 Jaitley meets PM ove ...

Jaitley meets PM over new RBI Governor's appointment

Published Aug 18, 2016, 8:16 pm IST
Updated Aug 18, 2016, 8:57 pm IST
Finance Minister Arun Jaitley
 Finance Minister Arun Jaitley

New Delhi: Finance Minister Arun Jaitley today held an hour-long discussion with Prime Minister Narendra Modi over appointment of new RBI Governor, a post that will fall vacant on September 4.

The high-profile meeting, which took place at the Prime Minister's residence here, is believed to have deliberated on various names who could succeed Raghuram Rajan, who demits office early next month on completion of his 3-year tenure.

Asked about the announcement of next Governor, Finance Minister Arun Jaitley said: "We will let you know when we decide. You will come to know about the conclusion, not the process."

Traditionally, the Prime Minister picks the RBI Governor after consultation with the finance minister. In June, Rajan surprised the markets when he in a letter to the RBI staff announced that he would return to academia and not seek a second term. Top contenders for the RBI Governor's post are current Deputy Governor Urjit Patel and former deputy governor Subir Gokarn.

Gokarn is currently an Executive Director at the International Monetary Fund while Patel was given a 3-year extension as RBI Deputy Governor in January. Others who are said to be in the fray include World Bank Chief Economist Kaushik Basu, Economic Affairs Secretary Shaktikanta Das, SBI chief Arundhati Bhattacharya and Finance Ministry's Chief Economic Advisor Arvind Subramanian.

Rajan, who will have the shortest tenure as RBI Governor since liberalisation began in 1991, decided not to seek a second term after unbridled political attacks on him were led by BJP MP Subramanian Swamy.

Location: India, Delhi, New Delhi


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