All seven EDs to be called for RBI Deputy Governor's position

All candidates will be interviewed on September 9.

The search committee to select a new deputy governor for the Reserve Bank of India (RBI) has decided to interview all seven executive directors of the central bank for Usha Thorat’s replacement.

Thorat, presently in charge of banking operations and development and banking supervision, among other departments, will complete a five-year term in November.

A search committee has been formed by the government. It is headed by RBI Governor D Subbarao. The secretary, financial services, R Gopalan, is a member. All candidates will be interviewed on September 9.

Among the seven EDs, V K Sharma is the seniormost, with almost two and a half years of service left. The retirement age of RBI employees is 60, except for deputy governors and the governor, where it is 62. A deputy governor can be appointed for up to five years or till the age of 62, whichever is earlier.

Apart from Sharma, other senior EDs are C Krishnan, Anand Sinha, and V S Das. Both Sinha and Krishnan will retire in February 2011, while Das will be at RBI till July 2012. A deputy governor can be appointed for up to five years or till the age of 62, whichever is earlier.

The other three EDs will have a longer stay at the central bank. G Gopalakrishna’s retirement is due in March 2016 and H R Khan will retire in July 2014. Deepak Mohanty, ED at the monetary policy department, will be in RBI till at least 2016.

Portfolios are expected to be re-allocated once a new deputy governor comes in. Shyamala Gopinath, another deputy governor, will retire in June 2011. Thorat and Gopinath have 19 departments among them, including the department of banking operations and development, banking supervision, financial markets, foreign exchange and financial stability. Of the other two deputy governors, Subir Gokarn has seven portfolios, including the monetary policy department, and K C Chakrabarty has four, including the customer service department.

Since both Thorat and Gopinath rose from the RBI ranks to become deputy governors, the positions will be filled by internal candidate only, by promoting the EDs. Since some of the EDs are also scheduled to retire, the central bank is set to see three or four new EDs over the next year.

Though the appointment of a deputy governor is made by the government, at the ED level it is RBI which decides to promote from chief general manager. There are about 30 CGM-ranked officials at the central bank. S Karuppasamy, regional director of RBI Kolkata, is the seniormost.