Mundra likely to be next RBI deputy governor

After throwing his weight behind Dalbir Singh Suhag as the next army chief, Finance Minister Arun Jaitley has endorsed another choice of the previous United Progressive Alliance government, by approving the name of Bank of Baroda chairman S S Mundra as a next deputy governor of the Reserve Bank of India.

The long-vacant post of chairman of the Pension Fund Regulatory & Development Authority might also be filled soon, with the Central Vigilance Commission giving a go-ahead for Hemant Contractor, former State Bank of India managing director, also a United Progressive Alliance choice.

“The files (on Mundra and Contractor) have gone to the Appointments Committee of the Cabinet for final approval,” said a government official, who did not wish to be identified.

The ACC, headed by the Prime Minister, usually doesn’t turn down a recommendation of the finance minister.

P Chidambaram, the former FM, had proposed Mundra’s name to then Prime Minister Manmohan Singh in the last few weeks of the UPA government.

Singh had returned the file, along with many others, saying the next government should decide.

RBI has four posts of deputy governors. One of those posts, for which Mundra is being recommended, has been vacant since April, after the exit of K C Chakrabarty, two months ahead of the completion of his term.

MOVING ON

• FM clears BoB Chairman S S Mundra as an RBI deputy governor
• Post vacant since K C Chakrabarty resigned in April
• RBI Governor Raghuram Rajan proposed to change criterion of appointing a bank chairman as an RBI deputy governor
• Finance ministry turned this down
• Former SBI MD Hemant Contractor is likely to be pension regulator; he’s been cleared by CVC

Image: SS Mundra (Centre) inaugurates the second Baroda non-stop 24X7 banking (e-lobby) in Pune; Photograph, courtesy: bankofbaroda.com