Dr. Poonam Gupta of NCAER appointed Deputy Governor of the RBI

The government of India has appointed Dr Poonam Gupta, director of the New Delhi-based think tank National Council of Applied Economic Research (NCAER), as the new Deputy Governor of the Reserve Bank of India (RBI).

Dr Poonam Gupta will replace Dr Michael Patra, who relinquished his office on 14 January 2025.

The name of Dr Poonam Gupta was approved by the Appointments Committee of the Cabinet, chaired by Prime Minister Narendra Modi. Union Home Minister Amit Shah is the other member of the Committee. 

Selection of the RBI Deputy Governor 

The government of India has the power to frame rules for the recruitment of the  Deputy Governor of the RBI and specify the minimum qualifications, age, etc for the Deputy Governor of the RBI..

The Deputy Governor is selected by the Financial Sector Regulatory Appointments Search Committee (FSRASC), which conducts the interview of the candidates and recommends the name of a suitable candidate to the government.

The central government is not bound to accept the recommendation of the FSRASC.

Term of Dr Poonam Gupta 

Dr Poonam Gupta has been appointed for a term of three years.

Legal provision regarding the Deputy Governor of the RBI.

• According to section 8 of the  Reserve Bank of  India (RBI) Act 1934, there shall be a maximum of four Deputy Governors of the RBI.
• By convention, the government appoints two officers of the RBI as Deputy Governors, one from the Commercial Banks and one an economist.
• The Deputy Governors are appointed by the Central government.
• The maximum term of a Deputy Governor shall not be more than 5 years.
• However, the government specifies the term of the Deputy Governor while appointing them.
• The Deputy Governor is eligible for reappointment.
• The maximum age of the Deputy Governor shall not be more than 60 years as on the specified date.

About Dr Poonam Gupta 

Dr Poonam Gupta did her Master's in Economics from the Delhi School of Economics, Delhi University and her Ph.D in Economics from the University of Maryland, USA.

She became the first woman to head the prestigious NCAER.

She has also worked at the International Monetary Fund and the World Bank..

She has also taught at the Delhi School of Economics and the University of Maryland. 

Deputy Governors of the RBI 

• At present, Swaminathan J, M. Rajeshwar Rao, and T. Rabi Sankar are the Deputy Governors of the RBI.
• First Deputy Governor - Captain Sir Sikander Hyat Khan and Sir James B. Taylor, appointed on 1st April 1935.
• First woman Deputy Governor-  K.J. Udeshi ( 2003-2005).

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