RBI Gets Three New Part-Time Di­rec­tors

The new mem­bers raise the strength of govt-ap­pointed di­rec­tors to six

The Economic Times - - Economy: Macro, Micro & More - Joel.Re­bello @times­group.com

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.