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Reserve Bank Of India Appoints Sudha Balakrishnan As Its First CFO

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| May 28 , 2018 , 11:22 IST

National Securities Depository Limited (NSDL) executive Sudha Balakrishnan has been appointed the first-ever chief financial officer (CFO) of the RBI, media reported on Monday. The appointment of Balakrishnan is effective from May 15.

The appointment of Sudha Balakrishnan as C.F.O is the biggest organisational change since Urjit Patel took over as RBI Governor in September 2016.

The central bank has been looking for a CFO since May 2017; initially, a foreign executive was selected for the post of C.F.O but declined to join due to differences in remuneration.

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Balakrishnan, who is a chartered accountant and was recently a vice-president at the NSDL will now be the 12th executive director of the RBI and will serve a three-year term.

As per the reports, the CFO will be paid a monthly salary of Rs 2 lakh with housing or Rs 4 lakh per month without housing and an annual increase of 3 to 5 percent will be given of gross cost to the company.

Balkrishnan’s role will be to oversee the government and bank account department, which processes transactions like payments and revenue collections such as taxes; this also includes dividend payment by the central bank to the government.

Besides internal accounts and budget, the CFO will also be in charge of corporate strategy functions like deciding the provident fund rate, which the central bank manages for its employees.

The new CFO will also be responsible for communicating an accurate and timely reporting of the central bank’s financial performance and oversee its budgetary processes, according to a recruitment notice issued in October 2017.