RBI to hold interviews for dy guv on Dec 8

A search committee headed by Reserve Bank of India (RBI) Governor Raghuram Rajan next month will interview nine candidates for the post of central bank's deputy governor. According to sources, the government-appointed search committee will meet on December 8 in New Delhi. RBI has four deputy governors — two filled from the rank and the other two hired from outside. Of the last two, one is a commercial banker and the other is an economist. The interview is being held to fill the vacancy to be created by the end of Urjit Patel's first three-year term on January 11. He is in charge of the monetary policy department and was hired from the Boston Consultancy Group. Interestingly, Patel will also sit for the interview.

However, it can be noted in recent past, none of the sitting deputy governors were given a second term.

He was hired when D Subbarao was the governor, in place of Subir Gokarn after his tenure ended.

Prior to joining the Mint Road office, Patel was an advisor (energy and infrastructure) with the BCG.

It has been learnt that out of the nine candidates two are executive directors with the central bank -- Michael D Patra and Deepak Mohanty -- while the other six are from outside.

While Mohanty is looking after regulations and risk management department under deputy governor R Gandhi, Patra is in the monetary policy and research department and reports to Patel.

Governor Rajan and Patel get along very well both having worked with the IMF earlier. Rajan appointed Patel to head the RBI panel to draft the monetary policy report, which became the basis of the ongoing reforms at the central bank.

The Patel committee report is the basis of the monetary policy committee which takes a lot of powers of the RBI and the governor as also move to create a public debt management agency.

Under the independent monetary policy committee, which is being set up, the government will set an inflation target to the RBI and the governor will be made answerable to Parliament if he fails to contain inflation at the given target.