MUMBAI: Three executive directors of the Reserve Bank -- SC Murmu, Vivek Deep and Rohit Jain -- are in contention to succeed the most senior deputy governor M Rajeshwar Rao, whose term ends in October, according to sources.
Rao, who is in charge of the departments of regulation, enforcement, and legal, apart from coordination roles through the secretary’s department, risk monitoring department, and overall policy coordination, was initially appointed in 2020 for three years, which was later extended twice.
Sources told The New Indian Express Tuesday that the Financial Sector Regulatory Appointments Search Committee, which holds interviews for the top management of RBI and Sebi, interviewed the three executive directors over the weekend and now will recommend the most suitable name to the government.
Between January and May, Rao was also in charge of the key monetary policy department after the government took too long to fill the vacancy created by the retirement of Michael Patra on January 14. Poonam Gupta, whose appointment was cleared in April, could join only in early May.
A deputy governor, who is appointed by the Cabinet Committee on Appointments headed by the prime minister, is not an RBI employee but that of the government.
The RBI Act 1934 mandates the central bank to have four deputy governors -- two from within the ranks, one commercial banker, and one economist to head the monetary policy department.
Patra was the first career central banker to rise from the ranks to head the monetary policy department. The deputy governor in charge of the monetary policy department had previously always been an economist from outside Mint Road.
SC Murmu is the senior-most executive director who looks after the supervision department now, while Vivek Deep looks after currency management and payments, and settlement, and Rohit Jain is in the department of supervision (risk, analytics, and vulnerability assessment).
All the three candidates are executive directors, which is the third most senior position in the central bank after the governor and the four deputy governors.
While the age limit for a deputy governor is set at 60 as of January 15, 2025, the FSRASC or the Financial Sector Regulatory Appointments Search Committee has the discretion to relax this criterion for exceptional candidates.
The FSRASC members typically include the Cabinet Secretary, the RBI governor, the financial services secretary, and two other independent experts.
Similarly, the one in charge of technology, payments and settlements and other key internal functions of the RBI is also from within the bank, while T Rabi Sankar has been assigned a broad spectrum of operational and technology-driven portfolios. Sankar’s other departments include payments and settlement systems, fintech, foreign exchange, information technology, and central security cell. He also manages government-related accounts and external investment operations, highlighting his role in digital and cross-border financial management.
The fourth deputy governor is normally a commercial banker (currently Swaminathan Janakiraman who was a managing director with SBI before) who focuses on supervisory and consumer-centric functions, leading the departments of banking supervision, consumer education and protection, and the Deposit Insurance and Credit Guarantee Corporation. His portfolio also covers financial inclusion, inspection among others.
Poonam Gupta, who is the newest entrant, will take charge of macroeconomic policy and communication. She heads key analytical and strategic wings, and departments of economic and policy research, financial stability department, and international department, along with overseeing the department of communication and corporate strategy and budget.