The most critical task for the new boss on Mint Street is to shield India from the ongoing global financial and economic turbulence.

In the Indian monetary system, the RBI governor's role is second only to one of the roles of the finance minister of the Government of India. The control of monetary policy rests with the RBI, which, thus, makes it a determiner to ascertain Cash Reserve Ratio (CRR) for banks which has a direct impact on. The job of the Governor of RBI is always to strike a balance between the growth rate and inflation of the country. Normally, the choice of RBI governor is not a controversial one and is announced well before the end of the incumbent's term.

India's Finance Minister P Chidambaram announced the name of Dr. Duvvuri Subbarao replacing Dr. YV Reddy as RBI Governor. He will be the 22nd Governor of the esteemed institution. 57-year-old Dr. Subbarao will have his current role initially for three years and may be reappointed for another two years as per RBI rules. The new RBI governor has a daunting task ahead of him. He needs to develop some effective measures to contain inflation and check rising interest rates that are hurting the common people. The interest rates both for companies and banks have increased significantly during recent months, thus paralyzing the growth. In this role, his interaction with RBI was critical at a time when the country grappled with rising inflation and the need for a fiscal and monetary policy framework to tackle this crippling tax on the poor.

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