Rajeev Shukla demands fixed four-year term for RBI governor

A demand for a fixed tenure of four years for the RBI Governor was made in Rajya Sabha on Tuesday by a Congress member, weeks after incumbent Raghuram Rajan announcing he would not seek extension on completion of his three-year term. Raising the issue during Zero Hour, Rajeev Shukla said Rajan had announced he would not seek a second term. "You know why there were so many controversies, so many statements. He (Rajan) is leaving after being hurt because of this," he said.

Making a case for fixed tenure for the RBI Governor, Shukla said Chairman of US Federal Reserve has a term of four years, while it was 8 years in case of Bank of England. The global average for the head of central banks is 5-6 years, he said. "I think in India it is not possible to give a tenure of 6 years, 8 years or endless tenure (to RBI Governor). I think the current provision is three years and extendable by another two years. But I think in India, RBI Governor should be for four years...That tenure should be fixed," Shukla said.

The Congress leader further said there was no fixed "qualification" for the post and added that an IAS officer, an economist or even an outsider could become RBI Governor. "Government should have a clear-cut policy regarding tenure, qualification and also what should be the procedure for appointment," he added.

Amid a tirade by BJP MP Subramanian Swamy, Rajan had on June 18 said he would go back to Chicago to continue his career in academics after completing his three-year term as the central bank chief on September 4.