RBI Gets Three New Part-Time Directors
The new members raise the strength of govt-appointed directors to six
Mumbai: The government on Thursday appointed three part-time directors to the Reserve Bank of India (RBI) board after an approval from the appointments committee of the cabinet. The directors will serve a four-year term.
In a release on the Department of Personnel and Training (DoPT) website, the government said that economist Ashok Gulati, Teamlease chairman Manish Sabharwal, and economist and former FICCI secretary general Rajiv Kumar have been appointed to the central bank’s board.
The latest appointments will increase the strength of government appointed directors on the RBI board to six from the current three. The government appoints ten peo- ple from various fields as nonofficial part-time directors. This is in addition to the two government officials present on the RBI board.
Last March, the government had appointed former Gujarat chief secretary Sudhir Mankad, the then TCS CEO and cur- rent Tata chairman Natarajan Chandrasekaran and Mahindra & Mahindra non-executive chairman Bharat Doshi as nonofficial directors. The RBI board does not have a say in setting interest rate, but it oversees the internal affairs of the central bank which may include, for instance, approving new bank licences. Board members may also be part of committees dealing with the RBI functioning.
Currently, besides the RBI governor and four deputy governors, economic affairs secretary Shaktikanta Das and department of financial services secretary Anjuly Chib Duggal are present as government official nominees on the RBI board. Four other government-nominated directors are also appointed to the local boards of the RBI in the east, west, north and south. Prasanna Mohanty was appointed on the southern local board, Vallabh Bhanshali on the western local board, and Sunil Mitra was appointed on the eastern local board for four years. These boards did not have a representative for more than three years.