Govt asks RBI's Chakraborty to hold on for three months

Moneycontrol Bureau

The government of India on Wednesday (late evening) asked K C Chakraborty, one of the deputy governors at the Reserve Bank of India (RBI) to continue his service for another three months for the time being. He was appointed as deputy governor in 2009 and his term is going to end on June 14, 2012.

"The Government of India today re-appointed Dr. K C Chakraborty as the Deputy Governor of the Reserve Bank of India for a further period of three months beyond June 14, 2012 or until further orders, whichever is earlier," RBI said in a release.

However, the proposal to give him an extension of two years (on long term basis) is under consideration of the Appointments Committee of Cabinet (ACC). The ministry of finance has reportedly endorsed his candidature as deputy governor for another two years. 

Before joining RBI, he was with the Punjab National Bank as chairman cum managing director. A RBI deputy governor can be appointed for five years and the retirement age is 62.