India Said to Consider New Term for RBI Deputy Governor Gokarn

India is considering a new term for Subir Gokarn, the deputy governor in charge of monetary policy at the nation’s central bank, a government official with direct knowledge of the matter said.

The finance ministry may take a decision on the appointment today, the official said, asking not to be identified before an announcement. Kalpana Kochhar, South Asia chief economist at the World Bank, has also been shortlisted for the job, the official said. D.S. Malik, a spokesman for the finance ministry, didn’t answer two calls made to his mobile phone seeking comment.

Gokarn, who was the Asia-Pacific chief economist at Standard & Poor’s, was appointed to the post at the Reserve Bank of India for three years in November 2009. His term ends today.

The central bank, based in Mumbai, is headed by Governor Duvvuri Subbarao, who is assisted by four deputies. While Gokarn overseas the monetary policy, Anand Sinha handles banking operations and K.C. Chakrabarty is in charge of co-operative banks and human resources. Harun Rashid Khan heads the foreign exchange and internal debt management departments.

Subbarao has left the policy benchmark unchanged since a 50 basis-point cut in April. Elevated inflation has limited the the central bank’s scope to cut borrowing cost even as the government forecast the economy will expand at the slowest pace in a decade.

The Economic Times newspaper earlier today reported Gokarn and Kochhar are being considered for the deputy governor’s post.

To contact the reporter on this story: Tushar Dhara in New Delhi at tdhara1@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net

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