RBI hires former Nomura trader to advise on financial markets: report

03 Sep 2015

Reserve Bank of India (RBI) is reported to have hired a former Nomura algorithmic trader, as part of an ongoing effort to deepen and expand the country's financial markets and make them more responsive to monetary policy moves.

The hiring of Gangadhar Darbha, who joined as a consultant at the start of this month, is a departure from the RBI's employment policies, reports quoting officials with direct knowledge of the development, said.

Despite his penchant for inflation fight, RBI governor Raghuram Rajan, who took over reins in 2013, has set out to bring fresh ideas to the conservative institution and has eyed recruiting more specialists from outside.

In late 2014, Rajan brought in former IMF economist Prachi Mishra to bolster economic research.

Senior officers at the central bank typically rise through the ranks having joined at a junior level. Some are seconded to foreign central banks to gather more specialist experience.

The job given to Darbha, as per an advertisement posted by the RBI, is to develop and improve derivatives markets and examine currency futures, interest rate futures and offshore non deliverable markets.

"The RBI strongly believes such new markets, new products will help in monetary policy transmission," said one official with knowledge of the RBI's thinking.

"Product development requires exposure to and experience in the global market. Such external hires will help add value to the RBI," the official said.