He succeeds Yana Venugopala Rao, who retired. Subbarao, 59, is the seventh Union finance Secretary to become governor in the Apex bank's 73 year history. He is also the 11th bureaucrat to don the mantle of governorship.
An IAS topper, Mr Subbarao was an alumni of the Indian Institute of Technology Kanpur(IIT-Kanpur) and an economics Phd from Andhra University. He entered the portals of RBI around 1300 hrs on Friday, Sep 5 where he was received by the Deputy Governors and escorted to the 18th floor. Dr Reddy handed over the charge to Mr Subbarao after exchanging pleasantries and a ceremonial cup of coffee.
"My immdiate priority would be to manage inflation and achor inflationary expectation", said Subbarao soon after assuming the charge. He said the short to medium term priority would be to pursue financial sector reforms in the context of financial and price stability.
He said it was a privilege to head the RBI and a challenge to step into the shoes of Dr Rao, who had set up a reputation. He was fully appreciative of the manner in which Dr Rao had led the Bank with dignity.