IDBI Bank CEO and MD, Mahesh Kumar Jain is appointed as the fourth deputy governor of Reserve Bank of India (RBI) by the government today (May 4), filling up the post that has been vacant since almost a year – after SS Mundra completed his term on July 31, 2017.
As per the Reserve Bank of India Act, the central bank is supposed to have four deputy governors – two from within the ranks, a commercial banker and an economist. All four officers are responsible to head the monetary policy department of the central bank of India. However, the post of fourth deputy governor of RBI has been laying vacant since former deputy governor SS Mundra retired in July 2017. Since then, the government had conducted two rounds of interviews to find Mundra’s successor – for which, officials like SBI MD B. Shriram and P.K. Gupta, UCO Executive Director Charan Singh, IDBI CEO and MD Mahesh Kumar Jain, skill development secretary K.P.Krishnan, Tamil Nadu principal secretary T.V. Somnathan and NITI Aayog’s additional secretary Yaduvendra Mathura were competing.
After rounds of intrinsic interviews, the government finally has a winner – IDBI CEO and Managing Director Mahesh Kumar Jain. The government announced today that Jain has been appointed as the fourth deputy governor of Reserve Bank of India, henceforth being the successor of SS Mundra after almost a year. MK Jain, who has piped major public sector bankers and IAS officers, is known to be well liked by the government for his handling of the lender, which until recently was one of the few state-owned banks with lower bad loans.
With the impression and nearly 30 years of experience as a career banker, Jain will be in charge of RBI’s banking supervisory department which is instrumental in cleaning up the banking system and making it stable and consistent. As Jain has now been appointed as the deputy governor of RBI, over 8.5 million shares of IDBI Bank change hands on Monday, compared with 30-day moving average of nearly 13 million – a two-week low with stock fall of 6.3% after Jain’s exit; but his skills will help the central Indian bank in time to come.