RBI chief: Gokarn, Patel, Mohan in the reckoning

Reserve Bank of India (RBI) Deputy Governor Urjit Patel and former deputy governors Subir Gokarn and Rakesh Mohan are the strongest contenders to succeed Raghuram Rajan as governor.

Rajan had announced last month he would return to teaching at the end of his term as RBI governor on September 4. Government sources said Prime Minister Narendra Modi and Finance Minister Arun Jaitley were close to a decision on Rajan’s successor and an announcement was likely by next week.

The government wants an economist as central banker and sources said Gokarn, Patel and Mohan were in the reckoning. Officials said Chief Economic Adviser Arvind Subramanian, Economic Affairs Secretary Shaktikanta Das and State Bank of India Chairperson Arundhati Bhattacharya were no longer in contention.

Gokarn is an executive director of the International Monetary Fund representing India, Bhutan, Bangladesh and Sri Lanka. An economist by training, Gokarn was RBI deputy governor till January 2013.

Rakesh Mohan is a distinguished fellow with Brookings India. He was Gokarn’s predecessor as IMF executive director and has headed many committees dealing with various policy issues, including transport and infrastructure.

Patel, a banker and economist, has served on various government panels and as an advisor in the finance ministry. A committee headed by Patel recommended retail inflation targeting and a monetary policy committee.