Finance secretary Duvvuri Subbarao will substitute YV Reddy as RBI governor. The announcement in this regard came on Monday , 1 September. Now, Subbarao will be the presiding officer of country's monetary policies for  the next five years. This IIT Kanpur BTech, studied economics from Ohio State University. He was a Humphrey Fellow at MIT during 1982-83, and completed his PhD in economics. His tenure at the World Bank from 1999-2004 was fabulous.

 

India's Finance Minister P Chidambaram Announced his name among various speculations about the top post of the central bank. He will have a challenging job as RBI governor, and major task would be to stabilize inflation rate which is soaring high without killing growth rate. Indeed a tough task, but for this techno-turn-economist, hopefully task would not be impossible. People who know him say that he would be able to do the tough job.

 

Indian monetary system is such that the RBI governor's role is just second only to one of the finance minister's. In principle, the control of monetary policy rests with the RBI, and this makes it a determiner to fix CRR for banks which has a direct impact on credit availability. The job of RBI governor is always to fine-tune the growth rate and inflation. He however, is expected to bring down inflation rate to a single-digit level.