RBI's H R Khan gets 2-year extension

The Reserve Bank of India (RBI) on Thursday said the Centre had reappointed Harun Rashid Khan as the central bank's deputy governor for two more years, effective Friday. On July 1, 2011, Khan was appointed deputy governor for a term of three years, which was to expire on Thursday.

Khan has been in charge of several important portfolios such as foreign exchange, external investments and operations and internal debt management. According to norms, a deputy governor can be appointed for up five years, or till he/she turns 60, whichever is earlier. However, there have been instances when these rules have been relaxed.

Of the four RBI deputy governors, two are selected from outside the central bank. Of them, one is a commercial banker and the other an economist. The central bank is planning to have another deputy governor, though this will require a change in the rules. Till then, RBI has proposed an officer on special duty or chief operating officer be appointed, with the rank of a deputy governor.

In April, the government appointed R Gandhi as deputy governor. Gandhi, 58, was given a three-year term. He succeeded Anand Sinha, who had retired in January.

Currently, RBI has three deputy governors - H R Khan, R Gandhi and Urjit Patel. The government is yet to decide on a replacement for K C Chakrabarty, who retired as deputy governor on April 25.