Shirish Chandra Murmu appointed as RBI Deputy Governor for three years

Shirish Chandra Murmu, currently an Executive Director at RBI, will assume charge as Deputy Governor on October 9, succeeding Rajeshwar Rao after being selected over two peers through a competitive process by the FSRASC

The Union Government has appointed Shirish Chandra Murmu as the new Deputy Governor of the Reserve Bank of India (RBI) for a term of three years. His appointment, approved by the Appointments Committee of the Cabinet (ACC) chaired by the Prime Minister, comes as M. Rajeshwar Rao prepares to retire early next month after completing his extended tenure.

Murmu, currently serving as an Executive Director at the RBI, will officially assume the role on October 9. He will replace Rao, the senior-most deputy governor, who has been overseeing crucial departments including banking regulation, enforcement, legal affairs, and internal coordination.

Selection after competitive process

Murmu was chosen following interviews conducted by the Financial Sector Regulatory Appointments Search Committee (FSRASC), which is responsible for selecting senior officials for key financial regulatory bodies. He was selected over two fellow executive directors—Vivek Deep and Rohit Jain—who were also in contention.

As per the RBI Act, 1934, the central bank must have four deputy governors: two selected from within RBI, one with experience in commercial banking, and one economist. While Murmu’s specific portfolio will be announced later, he is currently in charge of the Department of Supervision, a key area within the central bank that monitors the health and compliance of India’s banking system.

Rao, appointed as deputy governor in 2020, had his term extended twice. Between January and May this year, he also temporarily managed the Monetary Policy Department, stepping in due to a delay in appointing a successor after the retirement of Michael Patra.

RBI leadership in transition

Murmu’s elevation comes at a critical time, with several top positions at the RBI undergoing transition. While the upper age limit for a deputy governor is 60 as of January 15, 2025, the FSRASC has discretionary powers to relax this limit for outstanding candidates—signaling the government’s confidence in Murmu’s leadership.

The appointment reflects a continued focus on promoting experienced internal talent within the RBI to ensure continuity in regulatory oversight and financial sector stability.