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| 3G Impact |
Three former Reserve Bank of India (RBI) Governors are learnt to have met Prime Minister Manmohan Singh separately and impressed upon him the need for stability at the helm of the banking regulator, suggesting that D Subbarao be given an extension. Subbarao was given a three-year tenure that ends September 4. He is, however, eligible for a five-year term. According to government sources who did not wish to be quoted, C Rangarajan, Bimal Jalan and Subbarao’s immediate predecessor Y V Reddy have met the Prime Minister individually at different times, with institutional stability being one of the points of discussion. “There is a growing sense of a drift in the functioning of the government. Stable tenures for regulators can also help eliminate such a perception,” said a source. All the three former governors served full five-year tenures at RBI. Jalan, in fact, was at the helm for almost six years before being nominated to the Rajya Sabha. Rangarajan is the chairman of the Prime Minister’s Economic Advisory Council, and was a member of the search committee that zeroed in on Subbarao.
Indian Express
1 comment:
Former Governors have done great service. The extension or otherwise of the Governor, RBI, should not depend on who is the FM but on some sound principles.Subba Rao is an intellectual with unimpeachable integrity which is proving to be a rare combination nowadays. I have been given to understand that he is a gentleman and does not wish to act tough when the situation demands it. While he should be fair and impartial, he should also make it clear as to who is the Boss when needed and when any of his subordinates acts arbitrarily.
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