The successor of Urjit Patel, who surprisingly resigned as RBI Governor with immediate effect, will be found by a high-level panel headed by the Cabinet Secretary.
Once the panel finalises the name, it will be sent to the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi.
According to sources, the government will soon initiate the process for appointment of new RBI Governor following the sudden resignation of Patel on Monday.
The Financial Sector Regulatory Appointment Search Committee (FSRASC) is headed by Cabinet Secretary P K Sinha. Apart from him, the panel includes Additional Principal Secretary to the Prime Minister P K Mishra, who is a permanent government nominee, and three other experts, among others.
As per the process, the panel will invite applications from eligible candidates and based on interactions with them will select the candidate.
The appointment would be made by the central government on the recommendation of the FSRASC. It is noted that the FSRASC is free to identify and recommend any other person also, on the basis of merit, who has not applied for the post.
As per the RBI Act, the central bank should have one governor and four deputy governors - two from within the ranks and one commercial banker and another an economist to head the monetary policy department.