Rajeshwar Rao- New Deputy Governor of RBI
The Government of India (GoI) has appointed M. Rajeshwar Rao as the new Deputy Governor of Reserve Bank of India (RBI) on October 7, 2020. The post of deputy governor was vacant since March 2020 after the former Deputy Governor N R Vishwanathan resigned due to health issues.
Deputy Governor of RBI
The deputy governor is tasked with the duty of managing the internal debts, financial market operations, international departments and secretarial departments at the apex bank. He is a major part of the RBI Board.
How Deputy Governor is appointed?
- The name of the Deputy Governor is recommended by the Financial Sector Regulatory Appointment Search Committee.
- The committee includes RBI Governor, cabinet secretary and financial service secretary.
- The final call is taken by the Appointments Committee of the Union Cabinet by accepting and approving the name.
The RBI Board is set as per the RBI Act, 1934 by the Government of India. The board comprises of four deputy governors. The deputy governor acts as the ex-officio chairman of the board. However, the maximum strength of the board has been fixed at 21 that includes the Governor of RBI and Deputy governors. The board is an advisory body. The Governor of the RBI is not bound by the advices of the board.
Function of the RBI board
The board supervises the banks, Non-Banking Financial Companies and the financial institutions. But, as per the RBI Act, 1934 RBI board can make regulations only with prior approval from the GOI.