RBI board gets two new directors

Centre appoints Sachin Chaturvedi and Revathy Iyer

The government has appointed Sachin Chaturvedi, who heads Delhi-based think tank Research and Information System for Developing Countries (RIS), in place of Nachiket Mor on the central board of the Reserve Bank of India.

Revathy Iyer, a former Indian Audit and Accounts Services officer, was also nominated to the RBI board, along with Mr. Chaturvedi. Both are appointed for a period of four years with effect from September 19, 2018.

“In exercise of the powers conferred by clause (b) of the sub-section (1) of Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated Ms. Revathy Iyer and Prof. Sachin Chaturvedi (vice Dr. Nachiket Madhushan Mor) as Directors to the Central Board of the Reserve Bank of India for a period of four years with effect from September 19, 2018 or until further orders, whichever is earlier,” RBI said in press release.

18 members

With these appointments, RBI will now have 18 members on its central board, including four deputy governors and the governor.

The Economic Affairs Secretary and Financial Services Secretary of the Finance Ministry are also on the board. Mr. Chaturvedi was also appointed as member of the Eastern local board of RBI with effect from September 19, while Ms. Iyer was appointed to the Northern local board.

The board members are not responsible for setting the interest rate, but will provide a broader guidance to the central bank.

Mr. Mor, a former ICICI Bank executive, was first inducted in the board in May 2013 for four years. He was again appointed in August 2017. However, his term was cut short in September over allegations of conflict of interest, as he is also the country director of Bill and Melinda Gates Foundation.

Interestingly, Mr. Mor continues to be in the Eastern local board of RBI. The central board of the RBI includes members like chairman of Tata Sons N. Chandrasekaran, Manish Sabharwal, chairman and co-founder of Teamlease Services, and Satish Marathe, former chairman and CEO of United Western Bank, among others.