Govt source says bureaucrats will be the last option as past experiences with bureaucrats have not been good

New Delhi : The government was aware of Raghuram Rajan not staying beyond his three-year term as the governor of the Reserve Bank of India and had already begun the process of choosing his successor, top finance ministry officials said, adding that some former bureaucrats and senior bankers were among the front runners.

RBI Deputy Governor Urjit Patel and former deputy governor Rakesh Mohan and Chief Economic Advisor Arvind Subramanian are among the front-runners, the officials said.

“It (appointment) will happen reasonably in advance, we don’t want unnecessary speculation, it may not be extended to August or September,” a finance ministry official said.

 The three-year term of current RBI Governor Raghuram Rajan ends on Sep 4 and he has already clarified his intention not to continue.  “Several people are under consideration. Urjit Patel stands a good chance, Arvind Subramanian and Rakesh Mohan are also among front-runners. Then Subir

Gokarn is also under consideration and Shaktikanta Das also. But bureaucrats will be the last option as past experiences with bureaucrats have not been good,” another senior official said.

Both the senior officials said there is no panel to shortlist candidates for the post and the decision will be taken at the highest levels in the government.

The government was already aware of Rajan not being there for a second term and the process for selection of his successor had already begun, the official said. One of the official ruled out State Bank of India head Arundhati Bhattacharya from the race.

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