The Financial Sector Regulatory Appointment Search Committee (FSRASC) which is headed by Cabinet Secretary P K Sinha has started the process to select a new RBI governor following the resignation of Urjit Patel.

 

Apart from Sinha, the panel includes Additional Principal Secretary to the Prime Minister Dr P K Mishra, who is a permanent government nominee, and three other experts, among others.

 

As per the process, the panel will invite applications from eligible candidates and based on interactions with them will select the candidates for a final decision by the government.

 

The appointment would be made by the central government on the recommendation of the FSRASC. It is noted that the FSRASC is free to identify and recommend any other person also, on the basis of merit, who has not applied for the post.

 

This process was followed for the selection of SEBI Chairman Ajay Tyagi and IRDAI chairman S C Khuntia as well.

 

As per the RBI Act, the central bank should have one Governor and four Deputy Governors - two from within the ranks and one commercial banker and another an economist to head the monetary policy department.