The appointment of Sinha, who is Executive Director with the RBI, has been approved by the government, a senior Finance Ministry official said. Sinha is looking after banking operations and development, Financial Stability Unit at the RBI.
He will be elevated as the fourth Deputy Governor besides Shymala Gopinath, K C Chakrabarty and Subir Gokarn. As per the norm, two deputy governors are appointed from within the central bank, besides a banker and an economist.
The new deputy governor is expected to get portfolios looked after by his predecessor Usha Thorat. Sinha, who turns 60 in February, may get a two-year term since deputy governors normally get to serve till the age of 62.
Last year, a search committee, comprising of RBI Governor D Subbarao and Financial Services Secretary R Gopalan had interviewed six Executive Directors from RBI.