The chiefs of Bank of Baroda (BoB), Bank of Maharashtra (BoM), and Punjab National Bank (PNB) and Managing Directors of State Bank of India (SBI) are likely to throw their hats in the ring for appointment as Deputy Governor of the Reserve Bank of India.

The Government search panel will be spoilt for choice as Sanjiv Chadha (BoB MD & CEO), AS Rajeev (BoM MD & CEO), AK Goel (PNB MD & CEO), CS Setty and Swaminathan J (MDs at SBI), among others, are all seasoned bankers.

Incumbent RBI Deputy Governor (DG) M.K. Jain’s five-year term ends on June 21, 2023. Prior to his appointment as RBI DG, Jain helmed IDBI Bank and Indian Bank.

The RBI has four DGs. Of the four, two are career central bankers and one has commercial banking experience.

The fourth DG, who oversees the functioning of departments such as Monetary Policy, Economic and Policy Research, Statistics and Information Management, financial markets regulation and operations, could either be a career central bank economist or a senior Finance Ministry bureaucrat, or a top-notch economist from the private sector. 

Bankers applying for the DG’s position need to have at least 15 years experience in banking and financial market operations, extensive experience as a full-time director/ board member, according to the Finance Ministry’s notice inviting applications for the post of RBI DG.

The ministry said the candidate, as a practising banker, should have an appreciation of the role of banks in large corporate lending in an environment with strong bond markets, and an understanding of bankruptcy/ restructuring/ turnaround/ credit models, and/ or has overseen the risk management function in large financial institutions.

The candidate should not be more than 60 years as on June 22, 2023, the notice says. The initial appointment as DG will be for a period of three years, with scope for re-appointment. The post carries a pay scale of Rs 2.25 lakh per month.