The seal of the Reserve Bank of India hangs on a wall at the headquarters in Mumbai. (Photographer: Scott Eells/Bloomberg)

RBI Invites Applications For Post Of Deputy Governor

The Reserve Bank of India (RBI) on Wednesday put out a public notice inviting applications for the post of deputy governor, saying that it is seeking applicants with at least 15 years’ experience in banking and financial markets. This follows a similar notice put out on May 15, seeking applications for the post of a chief financial officer.

The RBI currently has four deputy governors. Two of them are internal appointees, the third is typically a career public sector banker while the fourth is an external appointee. Of the four, the position held by a banker, currently SS Mundra, is due to open up over the next few months. The RBI, in its notice, however, did not specify whether the applications are being sought for Mundra’s post. Typically, the government picks one of the senior public sector bankers for this post.

The qualifications listed by the RBI include:

  • 15 years of experience in banking and financial market operations.
  • Understanding of supervision and compliance in the financial sector.
  • An appreciation, as a practitioner, of the role of banks in large corporate lending, in an environment with strong bond markets.
  • Understanding of bankruptcy/restructuring/turn-around/credit models.

The call for application comes at a time when the Indian banking sector is facing a bad loan crisis. Indian banks are sitting on nearly Rs 10 lakh crore in stressed assets but resolution of these assets has been slow. Earlier this month, the government, through an ordinance, empowered the RBI to intervene directly in bad loan resolution. As part of this process, the RBI intends to set up oversight committees. It has also suggested that a committee comprising independent board members may be asked to recommend resolution plans for large stressed accounts.

The fixed salary for the deputy governor would be Rs 2.25 lakh and “the appointment will be for a period of three years and the person will be eligible for re-appointment”, said the RBI.

Applications will be accepted till June 21.

Earlier this month, the RBI sought applications for the post of CFO. The key job responsibilities listed for the CFO included communicating the bank’s expected and actual financial performance and overseeing the budget process. The CFO would also ensure compliance with financial regulations and flag off any risks to the central bank’s finances, said the advertisement.