The government on Monday appointed Finance Secretary Duvvuri Subbarao as the new 22nd governor of the Reserve Bank of India.

Mr. Subbaro had been chosen in the place of Y.V. Reddy, who would complete his term on 5th September.

“The order of appointment has been issued. He will assume office when Mr. Reddy demits office,” informed Finance Minister P. Chidambaram at a press conference.

Though according to the RBI Act, the appointment is meant to be for five years, but Dr. Subbarao has been appointed fro three years. However, the finance minister clarified that once Dr. Subbarao completes the three years of his appointment, he would be eligible for reappointment.

The main responsibility of the new Governor would be to control inflation which currently is at 12.40%. Earlier, it was being managed by Dr. Reddy.

Dr. Subbarao had been a topper of IAS in the 1972 batch and an alumnus of IIT Kanpur. He will be RBI’s 22nd Governor.