Central Board of Directors

• The RBI’s affairs are governed by a central board of directors. 
• Section 8(1)(a) of the Reserve Bank of India Act, 1934, provides that there shall be one Governor and not more than four Deputy Governors to be appointed by the central government on the central board of RBI.

Appointments

• The RBI governor is appointed by the Prime Minister’s office on the recommendation of the Union Finance Minister.
• Deputy Governors are appointed on the basis of the Appointment Committee of Cabinet (ACC)-approved guidelines, which stipulate that the search committee constituted for the purpose will recommend the person to be appointed as a Deputy Governor.

Appointment Committee of Cabinet

• It is chaired by the Prime Minister.
• It decides all higher-level appointments in the Central Secretariat, Public Enterprises, Banks and Financial Institutions.

Why in News?

• The Appointments Committee of the Cabinet has approved the appointment of M. Rajeshwar Rao to the post of Deputy Governor Reserve Bank of India.
• The RBI needs four Deputy Governors: two from within the ranks, a commercial banker and an economist to head the monetary policy department.

Reference:

1. https://www.thehindu.com/business/Economy/rbi-ed-m-rajeshwar-rao-is-named-deputy-governor/article32797968.ece