The union government has nominated the newly-appointed Secretary of Department of Economic Affairs (DEA), Tarun Bajaj, as a Director on the Central Board of the Reserve Bank of India. He replaces Atanu Chakraborty in the position in the Reserve Bank of Indian (RBI). Chakraborty retired as the DEA secretary on April 30 and Bajaj took over the post. The nomination of Tarun Bajaj is effective from May 5, 2020.
Prior to taking over as DEA secretary, he was the additional secretary in Prime Minister's Office. Before joining the PMO in 2015, Bajaj was Joint Secretary in the Economic Affairs Department, looking after multilateral funding agencies division. He also worked as a Joint Secretary and director in the Department of Financial Services, where he looked after the insurance division.
There are 5 official and 14 non-official members in the Central Board of Reserve Bank of India. Five official members are from the RBI – the Governor and the four Deputy Governors. The remaining 14 non-official members are nominated by the government from different fields. Of these, four are from Local Boards of the RBI.
While the Governor and four deputy governors are automatically members of the CBD, the RBI Act empowers the government to nominate non-official directors comprised of ten directors from various fields and two Government officials and four Directors – one each from four local boards. Among these ten nominated members, two are Government officials representing the Government, who are usually the Finance Secretary/Economic Affairs Secretary to the Government.
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As DEA's Secretary, Bajaj is to be responsible for all important proposals to revive the economy. In his new role, he is to work closely with the Reserve Bank of India and capital markets regulator Securities Exchange Board of India (SEBI) to ensure quick steps are taken in the interest of financial stability. The Economic Affairs Department assists the government in maintaining sound public finances through sustainable, equitable and efficient use of the nation's economic resources. The DEA is also at the forefront of talks with states to ensure they have adequate funding to battle Covid-19.