Mumbai: The Appointments Committee of the Cabinet on Tuesday cleared NS Vishwanathan appointment as Deputy Governor of Reserve Bank of India (RBI). Vishwanathan will succeed HR Khan, whose tenure ends on July 3. However, the Cabinet has not yet decided on who will succeed RBI Governor Raghuram Rajan, who recently announced that he will not take a second term after his tenure ends on September 4, 2016. According to the sources, four people have been shortlisted for the post.

The Centre has set in motion the process of naming a new Monetary Policy Committee (MPC).

The government has narrowed its list of candidates to become the next governor of the Reserve Bank of India to four, according to Reuters. The Centre has set in motion the process of naming a new Monetary Policy Committee (MPC). Existing Deputy Governor Urjit Patel, former deputy governors Rakesh Mohan and Subir Gokarn and State Bank of India (SBI) Chair Arundhati Bhattacharya are among the contenders for the RBI chief slot.

Raghuram Rajan 10 days ago announced that he would go back to teaching and not interested in second term at RBI. This statement had shocked the domestic markets. Rajan, 53, had been accorded rock-star status by markets for defusing a currency crisis, lowering inflation and winning parliament’s approval to set up the MPC which will set interest rates.

Yet the former IMF chief economist had come under attack from right wingers in Prime Minister Narendra Modi’s ruling party, with friends and colleagues saying this contributed to his decision to make an early exit.

However, Prime Minister Narendra Modi shrugged these claims and said: “Raghuram Rajan’s patriotism is no less than any of ours.” Modi further said that his experience of working with Rajan had been good.

Banking experts and market observers feel that a lack of transparency over the selection process was a worry, and it would be important to ensure Rajan’s successor is strong enough to uphold the RBI’s autonomy.