The Reserve Bank of India (RBI) recently appointed Sudha Balakrishnan as its first-ever chief financial officer (CFO), with effect from 15 May 2018. Sudha Balakrishnan, who is a chartered accountant by profession, was until recently employed with the NSDL (National Securities Depository Ltd.) as its vice president.
She is the 12th executive director of the Reserve Bank of India and will be serving a three-year term, which may be extended subject to RBI’s annual review. The CFO of the RBI is responsible for overseeing RBI’s balance sheet in order to make sure that the various accounting policies and procedures are in line with the regulations. Further, the CFO will manage RBI’s budgetary processes, communicate the central bank’s financial performance, and will be in charge of deciding the provident fund rate.
Sudha Balakrishnan will also oversee RBI’s dividend payments to the government and will manage the government and bank account department. In addition, she will also be overseeing the Reserve Bank of India’s investments within the country and internationally.
The decision to have a CFO position in the RBI was taken after Urjit Patel took over as governor of the RBI. The Reserve Bank of India has been in search of a CFO since May 2017. Sudha Balakrishnan was selected as the CFO after much deliberation. She will be eligible for a monthly pay of Rs.4 lakh without housing or Rs.2 lakh with housing, with an annual increase in compensation of 3% to 5%.