The search panel headed by RBI Governor Raghuram Rajan is believed to have recommended the name of Bank of Baroda chief S S Mundra for new RBI Deputy Governor in place of K C Chakrabarty who has opted to leave the central bank ahead of his tenure.

Interview of CMDs of nine public sector banks were held last Friday in New Delhi to select a replacement of Mr. Chakrabarty, sources said, adding that Mr. Mundra is the front runner among the bankers.

The panel called those chief who have been heading a bank for more than one year, sources said.

The vacancy would arise as Mr. Chakrabarty requested to be relieved on April 25, slightly earlier than his scheduled term end on June 30.

The Reserve Bank has four Deputy Governors - two from within the organisation, one economist and one banker.

Mr. Mundra has been heading Bank of Baroda since January last year.

The search panel has now recommended the name to the government for approval. Appointments Committee of the Cabinet (ACC), headed by the Prime Minister, will take a final view on the recommendation, the official said.

The others who have thrown their hats into the ring for the RBI Deputy Governor’s post are the CMDs of Punjab National Bank (K R Kamath), UCO Bank (Arun Kaul), Bank of India (V R Iyer), Oriental Bank of Commerce (S C Bansal), Indian Bank (T M Bhasin), Dena Bank (Ashwani Kumar), Indian Overseas Bank (M Narendra) and Canara Bank (R K Dubey).

An RBI deputy governor can be appointed for five years or till the age of 62, whichever is earlier. To be eligible for the post, a candidate needs to be less than 60 years old.

After Mr. Chakrabarty’s exit there will be two vacancies for Deputy Governors in RBI. Government is yet to find a replacement for Anand Sinha who retired in January.

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