New Delhi: The government is likely to announce successor to the outgoing Reserve Bank of India Governor Raghuram Rajan after Prime Minister Narendra Modi returns from his five-day tour of Africa, a top official said on Tuesday.
"A new governor will be named after Prime Minister returns from his Africa tour on July 11," the official said.
Mr Rajan announced last month that he would return to academia and not seek a second term after his current three-year term at the central bank ends on September 4.
Top contenders for the post are former RBI deputy governors Subir Gokarn and Rakesh Mohan.
Mr Gokarn is an executive director at the International Monetary Fund - a post previously held by Mr Mohan.
Others who are said to be in the fray for job include State Bank of India chairperson Arundhati Bhattacharya and Economic Affairs Secretary Shaktikanta Das.
Chief Economic Advisor Arvind Subramanian and the RBI's current deputy governor Urjit Patel are also considered to be in reckoning.
Incidentally, Mr Patel got a three-year extension as deputy governor of the RBI in January.
Traditionally, the prime minister picks the RBI Governor after consultation with the finance minister. The same process is likely to be followed this time around with PM Modi choosing Mr Rajan's successor after consulting Arun Jaitley.
Sources said that once a new governor is named, he/she will become an Officer on Special Duty (OSD) in the central bank to allow a smooth transition.
Mr Rajan, who will have the shortest tenure as RBI Governor since liberalization began in 1991, decided not to seek a second term after unbridled political attacks on him were led by BJP MP Subramanian Swamy.
All RBI governors in the past 23 years have received a second term - from Dr C Rangarajan (1992-97), Bimal Jalan (1997-03) and Y V Reddy (2003-08) to D Subbarao (2003-08). Mr Rajan will break that chain.
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