FSRASC recommends K P Krishnan, a PC crony for Dy. Governor job
Say it ain’t so, Finance Ministry. That the Financial Sector Regulatory Appointments Search Committee (FSRASC) Search Committee headed by the Cabinet Secretary has not recommended the name of Dr. K. P. Krishnan (KPK). KPK is not a commercial banker, and hence should not be suggested for the post of Deputy Governor (Dy. Governor), Reserve Bank of India (RBI).
It is beyond belief that despite repeated reminders of the closeness of Dr. K P Krishnan to the former Finance Minister Mr. P Chidambaram (PC), the FSRASC committee has endorsed the candidature of KPK. Are there elements in the Finance Ministry trying to cover their gluteus maximi (Tharoorese for butts) by getting a known PC loyalist appointed despite the post being a step down for the ultra-rank conscious babudom?
Why was this kept vacant for so long?
The post of Deputy Governor in RBI fell vacant on July 31, 2017, after S. S. Mundra completed his three-year term. Mundra was a commercial banker – Chairman of Bank of Baroda – before he was selected as Dy. Governor of RBI. As per the RBI Act, the central bank should have four deputy governors — two from within the ranks, one commercial banker and one economist. The vacancy was for a commercial banker; it was therefore expected that a commercial banker would be selected to the post.
This, however, did not come as a surprise to those who have been tracking the process of filling up the post for the following reasons:
- The post of Dy. Governor was advertised for the second time, despite the fact that interviews were held on July 27, 2017, and candidates were shortlisted in response to the first This gave the first indication that the match was fixed.
- The second advertisement deliberately kept the eligibility criteria for the post vague and open-ended, despite the fact that only commercial bankers were eligible to apply for the post.
- K. P. Krishnan applied in response to the second advertisement with full knowledge that the post was earmarked for a commercial banker.
It strongly appears as though the norms of eligibility for the post were changed to facilitate the shortlisting of Krishnan to the post.
Why is this not surprising? Think about this – if Mr. P Chidambaram can get his hands on a Top Secret For SC eyes only document on him, how hard would it be for him to line up the ducks in favor of Dr. Krishnan?
What is however surprising is that despite being aware that Krishnan is the mole of P. Chidambaram in the present establishment and that he has a dubious track record of manipulating the system to promote the personal and commercial interests of P. Chidambaram, nobody in the South and North Block appears to want to rein him in. For what purpose, one wonders… Is it the fear of antagonizing PC? Some of the well-known instances associated with KPK are as follows:
- Krishnan allegedly became persona-non-grata even in the previous regime when he was suspected of having been involved in the alleged espionage on the then Finance Minister, Pranab Mukherjee by planting recording devices in his office. This perhaps explains why KPK was shunted out of Finance ministry overnight.
- There is also an allegation that KPK succeeded in manipulating the service rule regarding compulsory cooling period after seven years on central deputation, by getting appointed as Resident Commissioner of the State of Karnataka in Delhi. Thereafter he managed to get into Prime Minister’s Economic Advisory Council despite poor academic credentials.
- When PC was back in the Ministry of Finance, guess who was rapidly brought back to the Finance Ministry? KPK. He was appointed as the Director General and Additional Secretary, Directorate of Currency, Department of Economic Affairs. This was a lapsed post that he resurrected for himself and also got the cooling period waived
- Krishnan was allegedly the key culprit in the currency-ink import scam but wriggled out of it by getting someone else implicated in it.
If the Appointment Committee of Cabinet accepts the recommendation of the Search Committee, then a handpicked honcho of P. Chidambaram will be in RBI, whose agenda would be to promote the commercial interests of Chidambaram. If this should happen, it would be like the tapping of Pranab Mukherjee’s phones once again. NDA or UPA, it appears as though Chidambaram will always be the winner.
 Why the delay in the selection of Deputy Governor? Apr 27, 2018, PGurus.com