Mr D. Subbarao
New Delhi, Sept. 1 The Finance Secretary, Dr Duvvuri Subbarao, will be the next Reserve Bank of India Governor, replacing Dr Y.V. Reddy, who demits office on September 5, the Union Finance Minister, Mr P Chidambaram, announced here on Monday.
A 1972 batch officer of the Indian Administrative Service from the Andhra Pradesh cadre, Dr Subbarao, 59, who is currently on an overseas visit, is being appointed as the 22nd Governor of the country’s central bank for a term of three years.
“Dr Subbarao will be appointed for a period of three years. The RBI Act allows for appointment up to five years. He will be appointed for three years. He will be eligible for re-appointment”, Mr Chidambaram told reporters.
An IIT-Kanpur alumnus, Dr Subbarao was one of the first IITians to join the civil services. He did his MS in economics from Ohio State University (1978) and was a Humphrey Fellow at Massachusetts Institute of Technology (MIT) during 1982-83. He has a Ph.D in Economics from Andhra University. He had worked as joint secretary in the Department of Economic Affairs during 1990-93, when economic reforms were initiated.
Dr Subbarao had also served as the Finance Secretary of the Government of Andhra Pradesh during 1993-98. Between 1998 and 2004, he was Lead Economist at the World Bank and worked on issues of public finance in the countries of Africa and East Asia.
Prior to his appointment as Finance Secretary from May 1, 2007, he was the Secretary to the Prime Minister’s Economic Advisory Council (EAC) from December 10, 2005.
Meanwhile, Mr Chidambaram used the opportunity of announcement of Dr Subbarao’s appointment as RBI Governor to place on record the Government’s “deep appreciation” for the services rendered by Dr Reddy firstly as Deputy Governor and then as Governor of the central bank.
“His (Dr Reddy) stewardship of RBI saw some major changes and improvements. He led the RBI with distinction through a period of change and rapid growth. We warmly thank him for his services”, Mr Chidambaram said.