Letters: A silver lining

This refers to the report "Rajan to be the next RBI governor" (August 7). The appointment of Raghuram Govind Rajan as the next Reserve Bank of India (RBI) governor is a silver lining amid the gathering clouds bedevilling the Indian economy. In the current situation, the central bank needs a chief like him who is well-versed in both banking and finance, apart from monetary policy. We hope that he will uphold the great traditions of his predecessors of independent and scientific thinking in the formulation of policies. One only wishes that he is given a full 5-year term.

A consequence of the appointment is the question of filling up of the post of a deputy governor (DG) held by an RBI staffer due to retire at the end of February 2014. Since the early 1980s, there has been an unwritten convention that of the four deputy governors, one each should be an economist, a commercial banker, a member of the Indian Administrative Service (IAS) and from the ranks of the Bank. When the governor is from IAS, the RBI staff gets an additional post of DG instead of an officer from that service. During the last 10 years, the governor's post has been filled by IAS officials and two DGs have been from RBI ranks. Now that a non-IAS gentleman is the governor-designate, the IAS lobby will start working to claim its share in the DG's posts. Neither the Bhagvad Gita nor the Bible stipulates that an IAS babu should have a finger in every pie. The RBI unions at all levels should be alert and do the needful sufficiently in advance before the interviews for the appointment of a DG. The list of interviewees should contain only the names of executive directors of the RBI.

A Seshan Mumbai

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