Government shortlists 4 for RBI top job

The government’s decision to shortlist well-known economists and banking industry veterans for RBI governor is expected to provide positive signal and confidence to the markets. According to reports, the government is considering current deputy governor Urjit Patel, former deputy governors Rakesh Mohan and Subir Gokarn and SBI chairwoman Arundhati Bhatta-charya to replace Dr Raghuram Rajan whose tenure as RBI governor ends in September 2016.

While Mr Patel is part of the current team, which has taken a number of initiatives to strengthen and deepen the Indian banking sector, experts said Mr Mohan and Mr Gokarn are remembered for being part of the team that steered and guarded the domestic banking industry post Lehman Brothers collapse in 2008 that led to a crisis of confidence and liquidity in the global credit markets. According to market participants, the financial markets would give a big thumps-up to anyone who would uphold the autonomy and independence of the Reserve Bank and also continue with the good works initiated by the current RBI governor.