Four candidates in race for vacant RBI Deputy Governor post

A six-member panel led by Cabinet Secretary T.V. Somanathan is said to be considering four candidates to replace former Deputy Governor Michael Patra.

The selection is being conducted by the Financial Sector Regulatory Appointments Search Committee (FSRASC), which also includes the Secretary of the Department of Financial Services, the RBI Governor, and three external experts.

According to sources, the round of interviews was held in mid-January. Candidates who have likely been interviewed include Nalamala Bhanumurthy, Director at Madras School of Economics; Ritvik Pandey, Secretary of the 16th Finance Commission; Poonam Gupta, a former World Bank economist and part-time member of the Prime Minister’s Economic Advisory Council; and economist Ajit Ranade.

Chief Economic Advisor V. Anantha Nageswaran was also interviewed but has since been granted a two-year extension until 2027.

The selected candidate will replace Michael Patra, whose four-year term ended on January 14. Patra was in charge of the monetary policy department, which is currently being overseen by Deputy Governor M. Rajeshwar Rao on an interim basis. The official announcement is expected this week.

The RBI Act, 1934, mandates that the central bank have four deputy governors — two from within the ranks, one commercial banker, and one economist to head the monetary policy department. While the age limit for the Deputy Governor position is set at 60 years as of January 15, 2025, the FSRASC has the discretion to relax this criterion for exceptional candidates.