Raghuram Rajan to be new RBI governor

Chief economic adviser in the finance ministry Raghuram Rajan will be the new governor of the Reserve Bank of India (RBI) replacing D Subbarao, the government announced Tuesday.

"Prime Minister (Manmohan Singh) has approved the appointment of Raghuram Rajan as the governor of Reserve Bank of India (RBI) for a term of three years," finance ministry said in a statement.

Rajan will succeed Subbarao, whose tenure ends Sep 4, 2013.