The government today appointed IDBI Bank managing director M K Jain as Deputy Governor of RBI in place of S S Mundra, who had completed his three-year term in July last year.

"Government appoints experienced banker Mahesh Kumar Jain, MD & CEO of IDBI Bank as Deputy Governor of RBI for a term of three years," said Financial Services Secretary Rajiv Kumar in a tweet.

A search panel headed by the Cabinet Secretary interviewed candidates, including three senior bureaucrats, on May 10.

The search panel also includes RBI Governor, Financial Services Secretary and some independent members.

Jain, with 30 years of banking experience, has been MD of IDBI Bank since March 2017. Prior to this, he was MD of Chennai based Indian Bank. He was appointed MD of Indian Bank in November 2015.

He also served in several banking sector panels including secretary and coordinator to Basant Seth Committee on Review and Revamp of Internal and Concurrent Audit System in Public sector banks.

He was a member of the government constituted a committee on PIL on NPAs for submission to Supreme Court and redesigning Annual Performance Appraisal Report of PSB officers.

As per the RBI Act, the central bank should have four deputy governors - two from within the ranks and one commercial banker and another an economist to head the monetary policy department.

Other serving Deputy Governors are Viral V Acharya, N S Vishwanathan and B P Kanungo.

Although interviews were conducted on July 29 last year, the government decided to start the process all over again in January this year.

The deputy governor will draw a fixed salary of Rs 2.25 lakh per month plus allowances, it had said.