Why in news
Revenue Secretary Sanjay Malhotra took charge as the 26th Governor of RBI for the next three years
Malhotra emphasized the role of technology and innovation in promoting financial inclusion and expansion.
How is the RBI Governor appointed?
The governor is appointed as the the RBI Act, 1934.
The law states that the chief is appointed by the Central government.
The Financial Sector Regulatory Appointment Search Committee, consisting Cabinet Secretary, current RBI Governor, Financial Services Secretary and two independent members, prepares a list of people eligible to hold the post.
Next, the shortlisted candidates are interviewed and sent to the Cabinet Committee on Appointments, which is headed by the Prime Minister.
The committee selects the governor through confirmation of the appointment.
The governor holds office for periods not exceeding five years.
The term of the governor may be fixed by the government at the time of his appointment.
The central bank chief is is eligible for reappointment or extension.
The RBI Act, 1934 does not mention any specific qualification for the governor.
People with different educational backgrounds were selected to head the institution.
COMMENTS