The Reserve Bank of India Governor is appointed by the Prime Minister’s Office (PMO) on the recommendation of the Union Finance Minister, the Centre informed Parliament on Tuesday. While the Appointment Committee of Cabinet (ACC) guidelines for appointment of Deputy Governors are still the same, the composition of the search committee had been changed, Minister of State for Finance Santosh Kumar Gangwar said in response to a separate query.
“…the appointment of Governor, RBI, is approved by Prime Minister’s Office on the recommendation of Finance Minister,” Mr. Gangwar said in a written reply to the Rajya Sabha.
Section 8(1)(a) of the Reserve Bank of India Act, 1934, provides that there shall be one Governor and not more than four Deputy Governors to be appointed by the central government on the central board of RBI, he said.
Deputy Governors are appointed on the basis of ACC-approved guidelines, which stipulate that the search committee constituted for the purpose will recommend the person to be appointed as a Deputy Governor.
“Now, a search committee, namely Financial Sector Regulatory Appointment Search Committee (FSRASC) has been constituted with the approval of ACC... The committee will recommend names for appointment of Chairperson and Members of financial sector regulatory bodies, including those of the Governor and Deputy Governors,” the minister said.
