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Mahesh Kumar Jain, currently the CEO and MD of IDBI Bank, has been appointed as the fourth Reserve Bank of India (RBI) deputy governor for a period of three years, as approved by the Appointments Committee of the Cabinet.
The appointment comes after nearly ten months of his predecessor SS Mundra's term ended.
Jain has an experience of over 30 years in the banking sector. Prior to his stint with IDBI Bank, he was the chief of government-owned Indian Bank, which he had turned around under his leadership.
Since his move to IDBI Bank, Jain has been focused on cleaning up the bank’s balance sheet and has taken many steps to divest several non-core assets to help shore up the bank's capital. Jain has also served on several banking sector committees and involved in risk management efforts at an industry level.
He has also been a member of the Indian Banks’ Association (IBA) committee on risk management, committee on PIL on NPAs for submission to Supreme Court and redesigning annual performance appraisal reports of public sector bank officers.
Rajeev Kumar, Secretary Department of Financial Services (DFS), Ministry of Finance, Government of India also tweeted Jain's appointment.
Other banker candidates in the fray were SBI managing directors B Sriram and PK Gupta, and UCO Bank executive director Charan Singh.
KP Krishnan, Secretary Skill Development and Entrepreneurship, Yaduvendra Mathur Additional Secretary NITI Aayog and T V Somanathan, Principal Secretary in Tamil Nadu, also appeared for the interview before Financial Sector Regulatory Appointment Search Committee (FSRASC).
On May 10, a search panel headed by the Cabinet Secretary had interviewed and shortlisted nine candidates out of the 40 applicants, including Jain, to find a successor to RBI Deputy Governor S S Mundra.
As per the RBI Act, the central bank should have four deputy governors - two from within the ranks and one commercial banker and another an economist to head the monetary policy department.
Although interviews were conducted on July 29 last year, the government decided to start the process all over again in January this year.
As per the government notification, the appointment will be made for a period of three years and the person will be eligible for reappointment.
The deputy governor will draw a fixed salary of Rs 2.25 lakh per month plus allowances, it had said.
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