The Reserve Bank of India Governor-designate, Raghuram Rajan, will move to Mint Street from North Block three weeks ahead of September 5, when he is slated to assume charge.
The Centre has appointed Rajan as officer on special duty (OSD) in the RBI for a period of three weeks, prior to his assuming charge as Governor on September 5.
This has been done to “provide for an overlap with the present Governor” was the official response, when quizzed about the decision.
This move to appoint Rajan as an OSD in the RBI has come as a surprise to many in the banking circles. It is the first time ever that an RBI Governor-designate will serve as an OSD in the central bank ahead of assuming charge, say RBI watchers. Some RBI observers welcomed the move and said it could help in a smooth transition for Rajan. “The incumbent RBI Governor had to face the fallout of the Lehman Crisis within days of his assuming charge at the central bank. It had taken him a couple of months to meet various people and come to an understanding of the issues. That situation can be avoided if Rajan gets some first-hand feel of the issues ahead of the big day,” an RBI observer said.