Interim COO at RBI not possible: FinMin

Creation of a job of interim chief operating officer with a deputy governor’s rank at the Reserve Bank of India (RBI) is not possible, the Union government said on Wednesday.

“An interim COO cannot happen as the law does not allow this. The (RBI) Act has to be amended first. There is no ambiguity on that,” said G S Sandhu, secretary, financial services. “We have not got any proposal so far (from RBI on a COO). Once the proposal comes, we will have to address the issue.”

He spoke to reporters here on the sidelines of a banking conclave.

The law permits RBI to have four deputy governors, all appointed by the government. To increase the number, the RBI Act needs amending. Till this is done, it was suggested by RBI that it appoint a COO with this rank. RBI also wanted to appoint two additional executive directors (EDs). These came as part of a recent statement about a personnel restructuring exercise.

The central bank said its board of directors had approved the broad contours of the proposals. However, it added, the board “also asked (us) to initiate a dialogue with the government on the additional post of deputy governor and the legislative changes needed. The Reserve Bank will proceed further in the matter keeping such advice in view”.