IDBI Bank's M K Jain named RBI Dy Governor, fills space vacated by Mundra

Appointment is for three years; Jain has been on boards of Exim Bank, National Institute of Bank Management, among others

IDBI Bank managing director M K Jain has been appointed the new deputy governor of Reserve Bank of India on Monday, filling up the post that was vacant since July last year.

“Government appoints experienced banker Mahesh Kumar Jain, MD and CEO of IDBI Bank as deputy governor of RBI for a term of three years,” department of financial services secretary Rajiv Kumar announced on Twitter.

Jain will fill up the post previously held by S S Mundra who completed his three-year term on July 31, 2017. Jain has over 30 years of experience as a banker and he has been the MD and CEO of IDBI Bank since March 2017. He was previously heading Indian Bank for two years. The deputy governor will draw a fixed salary of Rs 2.25 lakh per month plus allowances.

Jain has also served on the boards of Exim Bank, National Institute of Bank Management, among others. He has also been a part of several committees on the banking sector, including as a secretary to Basant Seth committee on review and revamp of audit system in public sector banks (PSBs) and as a member on a government-constituted committee on public interest litigation related to non-performing assets (NPA). He also played a role in redesigning the annual performance appraisal reports of PSBs.

The finance ministry had received as many as 37 fresh applications for the post of deputy governor. As per the RBI Act, the central bank should have four deputy governors — two from within the ranks, one commercial banker and one economist — to head the monetary policy department.

Besides Jain, UCO Bank executive director Charan Singh and SBI managing directors B Sriram and P K Gupta were among the top contenders for the post. A few bureaucrats had also applied for the post and were called for an interview. K P Krishnan, Secretary Skill Development and Entrepreneurship, Yaduvendra Mathur Additional Secretary NITI Aayog and T V Somanathan, Principal Secretary in Tamil Nadu were among the shortlisted candidates in the bureaucratic circle.