In a significant development, the government has announced the appointment of Swaminathan Janakiraman, the managing director of State Bank of India (SBI), as the Deputy Governor of the Reserve Bank of India (RBI). The decision comes as MK Jain, the incumbent Deputy Governor.
As per an official notification, Swaminathan Janakiraman’s appointment as RBI Deputy Governor is for a period of three years from the date of joining the post or until further orders are issued. This move is in line with the provisions of the RBI Act, 1934, which mandates that the central bank should have four Deputy Governors, including one from the commercial banking sector and an economist to head the monetary policy department, in addition to the two Deputy Governors from within the ranks.
The selection process for the position of RBI Deputy Governor involved a panel headed by the Cabinet Secretary, which conducted interviews with the shortlisted candidates on June 1. The appointment of Swaminathan Janakiraman is a testament to his extensive experience and leadership within the banking industry, particularly his role as the managing director of SBI.
Alongside Swaminathan Janakiraman, the other three Deputy Governors currently serving at the RBI are Michael Debabrata Patra, M Rajeshwar Rao, and T Rabi Sankar. The role of Deputy Governors in the RBI is crucial, as they contribute to the decision-making process and play a pivotal role in shaping monetary policies and the overall functioning of the central bank.
Deputy Governor appointments are initially made for a period of three years, with the possibility of reappointment. The position carries a fixed monthly salary of ₹2.25 lakh, along with allowances.
Swaminathan Janakiraman’s appointment as RBI Deputy Governor is expected to bring forth his expertise and contribute to the continued stability and growth of India’s banking and financial sector. With his vast experience in the banking industry, he is well-positioned to address the evolving challenges and opportunities in the current economic landscape.
As Swaminathan Janakiraman assumes his new role, stakeholders will be closely observing the policies and strategies implemented by the RBI under his leadership, as they play a crucial role in shaping India’s economic trajectory.
Sources By Agencies