Why the delay in the selection of Deputy Governor?

The selection process for a Deputy Governor of RBI for Commercial Banking has started all over again

The selection process for a Deputy Governor of RBI for Commercial Banking has started all over again
The selection process for a Deputy Governor of RBI for Commercial Banking has started all over again

Deputy Governor S S Mundhra’s term completed on Jul 31, 2017. Since then the post of a Deputy Governor in charge of Banking has remained vacant. If this was occupied by an able officer, could the PNB scam have been avoided?

Even though UPA is out of power, Chidambaram has succeeded in manipulating the government to have his people in key positions. How else would he have got his hands on a confidential document prepared by the CBI against him for the eyes of the Supreme Court?

Interviews for the post took place on July 29, 2017

The post was advertised and interviews held yet the Government has started the process all over again in January of this year. What about the results of the previous interview? Were all these candidates found to be inadequate?

As per the Reserve Bank of India (RBI) Act, the central bank should have four deputy governors. The long-established convention is that out of the four posts, two are from within the ranks, one economist – to head the monetary policy division – and one commercial banker. This convention has stood the test of time for the RBI. The vacant post is for the commercial banker.

Is PC trying to get in his candidate?

The legions of minions of the former Finance Minister P Chidambaram (the C-Company) are the stuff of legend[1]. That this former Finance Minister continues to have so much clout in the Finance Ministry beggars belief.

It is seen from the press-reports that Dr. K. P. Krishnan, currently working as the Secretary in the Department of Rural Development is one of the short-listed candidates, though he is not a commercial banker. This not only violates the sound convention of having one commercial banker as the Dy. Governor, but it also solves the mystery why the post was advertised again… Is it to help Dr. Krishnan apply for the post?

It is no secret that Dr. K. P. Krishnan is the man-Friday of P. Chidambaram. Chidambaram had held a stranglehold on capital markets through K. P. Krishnan. He was shifted from Ministry of Finance after NDA came to power. But here comes the interesting part.

Even though UPA is out of power, Chidambaram has succeeded in manipulating the government to have his people in key positions. How else would he have got his hands on a confidential document prepared by the CBI against him for the eyes of the Supreme Court?[2] Now the aim appears to be to acquire a stranglehold on the entire banking and monetary system through RBI.

KPK can put a kibosh on all inquiries

After the post of Governor has been downgraded, it would appear odd that a Secretary to the Government of India applies for the post of Dy. Governor of RBI. Could it be because Dr. Urjit Patel is not exactly toeing the line of the vested interests that the said vested interests are trying to usher in K. P. Krishnan who supposedly wields a lot of clout in the bureaucracy and the PMO? It is not difficult to visualize who would be the de-facto Governor if Dr. Krishnan is selected as Deputy Governor.

As more scams come tumbling out of various banks’ closets, the need of the hour is a Bold, Honest, willing-to-take-an-out-of-the-box approach, Dy. Governor, not a Babu with known affiliations.

Given the track record of manipulating the system1, it would not be difficult for Dr. Krishnan to manipulate the composition of the Monetary Policy Committee. In short, once Dr. Krishnan becomes Deputy Governor of RBI, P. Chidambaram would control the entire bond market, Forex market, and the banking sector. While the government would be left with the control of fiscal policy, P. Chidambaram would control monetary policy and the financial system.

Mr. Modi, please choose carefully!

References:

[1] C Company machinations – Part 10. How Chidambaram continues to rule over Fin MinDec 1, 2017, PGurus.com

[2] Your time is running out, Mr. ModiApr 23, 2018, PGurus.com

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An inventor and out-of-the-box thinker, Sree Iyer has 37 patents in the areas of Hardware, Software, Encryption and Systems.

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