Confusions and Emptiness in RBI Board continue…

Ira Dugal just tweeted about how we do not have a Deputy Governor after nearly 2 months of Mr Mundra’s term getting over.

This led me again to the RBI Board webpage which has been under intense pressure ever since they decided on the note ban.

It says currently following are the Central Board members (accessed on 11 AM ,28/9/17):

Names and addresses of the Central Board of Directors of the Reserve Bank of India
1. Dr. Urjit R. Patel
Governor
@7. Shri Bharat Narotam Doshi
2. Shri N. S. Vishwanathan
Deputy Governor
@8. Shri Sudhir Mankad
3. Dr. Viral V. Acharya
Deputy Governor
@9. Dr. Ashok Gulati
4. Shri B.P. Kanungo
Deputy Governor
@10. Shri Manish Sabharwal
*5. Dr. Nachiket M. Mor #11. Shri Subhash Chandra Garg
@6. Shri Natarajan Chandrasekaran #12. Shri Rajiv Kumar

Despite all the criticism, the Board just has 12 members instead of the mandated 21 as per RBI Act.

What is also interesting is that Dr Rajiv Kumar’s name (now the head of Niti Aayog) was missing from the Board rolls.

He was nominated along with Prof Gulati and Mr. Sabharwal on Feb 9, 2017:

In exercise of the powers conferred by clause (c) of the sub-section (1) of Section 8 of the Reserve Bank of India Act, 1934, the Central Government has nominated Dr. Rajiv Kumar, Dr. Ashok Gulati and Shri Manish Sabharwal as directors on the Central Board of the Reserve Bank of India for a period of four years with effect from February 9, 2017 or until further orders, whichever is earlier.

His name appears on recently RBI Annual report as well.

GOVERNOR
Urjit R. Patel

DEPUTY GOVERNORS
N. S. Vishwanathan
Viral V. Acharya
B. P. Kanungo

DIRECTORS NOMINATED UNDER SECTION 8 (1) (b) OF THE RBI ACT, 1934

DIRECTORS NOMINATED UNDER SECTION 8 (1) (c) OF THE RBI ACT, 1934

Natarajan Chandrasekaran
Bharat Narotam Doshi
Sudhir Mankad
Rajiv Kumar
Ashok Gulati
Manish Sabharwal

DIRECTORS NOMINATED UNDER SECTION 8 (1) (d) OF THE RBI ACT, 1934

Anjuly Chib Duggal
Subhash Chandra Garg

In case one is confused with the other Rajiv Kumar on the Board, he is Secretary Department of Financial Services who was nominated in Sep 2017 instead of .Ms Anjuly Chib Duggal:

The Government of India has nominated Shri Rajiv Kumar, Secretary, Department of Financial Services, Ministry of Finance, Government of India, New Delhi as a Director on the Central Board of Directors of Reserve Bank of India vice Ms Anjuly Chib Duggal. The nomination of Shri Rajiv Kumar is effective from September 12, 2017 and until further orders.

Most likely, Dr Rajiv Kumar could have exited the Board on his appointment as Niti Aayog chief. In that case there should have been some notification of the same. Given he was appointed on 5 August 2017 and RBI Annual Report mentions position as on 16 August 2017, one is not sure what is going on really.

These issues of central bank governance are serious stuff as we are seeing across quite a few countries. This is the very reason RBI Board was appointed at the first place. The least to expect here is to get regular updates on entry/exit from the Board.

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