The Appointments Committee of the Cabinet approved the appointment as the search for the incumbent was on since August.
The Financial Sector Regulatory Appointment Search Committee (FSRASC), which had included the cabinet secretary, RBI governor and the financial services secretary, interviewed candidates on August 21.
RBI executive directors M Rajeshwar Rao and Lily Vadera were the top contenders to succeed NS Vishwanathan as the central bank’s fourth deputy governor, ET reported on August 25.
Rao, a career central banker, has spent 36 years at the RBI across various departments including regulation and supervision and different regional offices of the regulator.
He is in charge of the internal debt management, financial markets operations, international and secretarial departments at the central bank. His vast experience makes him a front runner for the post, ET reported earlier.
The position fell vacant in March after Vishwanathan resigned before the completion of his term in June, citing health reasons.
Bankers were viewing this post with interest as the new deputy governor will oversee the regulation department, which sets rules and regulations for the financial sector.