The government is likely to appoint a deputy governor of the RBI by this month end despite disruption in the selection process following the resignation of former Satyam Computer independent director M Rammohan Rao from the selection committee.
The government has appointed a Search Committee headed by RBI Governor D Subbarao to shortlist candidates for the post of deputy governor following superannuation of V Leeladhar last month.
Since Rao, who was an independent director on the board of Satyam Computer Services and Dean of the Indian School of Business, resigned from the committee, the government will have to find his replacement to allow the Search Committee to shortlist candidates.
Subsequently, the shortlisted names would be referred to the Appointments Committee of Cabinet headed by Prime Minister Manmohan Singh.
The government, according to finance ministry officials, will soon appoint another member on the selection panel and recommend the name or names to the ACC for final approval.
The post of the deputy governor is expected to be filled by the end of this month, officials said.
The committee would interview candidates including Bank of India Chairman and Managing Director T S Narayansami, Punjab National Bank CMD K C Chakrabarty, Union Bank of India CMD M V Nair and IDBI Bank CMD Yogesh Agrawal.
Narayansami is the senior most candidate followed by Chakrabarty, they said.
RBI has four deputy governors and one post fell vacant after Leeladhar completed his four-year term. He was in charge of banking operations and supervision.
Besides Subbaro, the other members on the Search Committee include Finance Secretary Arun Ramanthan, secretary of department of personnel and training Rahul Sareen and former managing director of State Bank of India Vepa Kamesan.
This is the first time the RBI deputy governor would have to go through a Search Committee, officials said.
The trend of such panel started last year with the Cabinet Secretary K M Chandrasekhar heading Search Committee for shortlisting the name for the chairman of the Securities and Exchange Board of India.
Subsequently, appointments of the Reserve Bank governor and chairman of the Insurance Regulatory and Development Authority were carried in the same manner.