India’s central bank governor set to ‘move on’: report

MUMBAI, July 31, 2013 (AFP) – India’s central bank governor has decided to “move on” and a hunt for his successor is underway, the country’s finance minister was quoted saying Wednesday. The government’s chief economic advisor, Raghuram Rajan, India’s economic affairs secretary Arvind Mayaram and Planning Commission member Saumitra Chaudhary are contenders to succeed Subbarao, the newspaper said. Reserve Bank of India (RBI) governor Duvvuri Subbarao’s five-year term ends on September 4, but there has been media speculation that he may receive an extension.

“Dr Subbarao had met me a few weeks ago and said he would like to move on and he would not like to be considered for another term,” Finance Minister P. Chidambaram told the Economic Times newspaper.

“I accepted, so now we are in search mode,” Chidambaram said.

Subbarao had indicated that he wanted to leave on time in September, but media speculated the Congress-led government would prefer not to make changes until after national elections due in May.

The RBI has been in crisis management mode in recent weeks as it attempts to steady the ailing local currency, which hit a record low against the dollar this month.