Reserve Bank of India governor Raghuram Rajanhas become the first Indian central banker to be appointed as vice-chairman of the Bank for International Settlements (BIS) -the bank for central banks. The appointment is expected to give stronger voice to Rajan, who has been repeatedly calling for more coordination among central banks in monetary policy.

Rajan was elected to the number two position for a period of three years from November 10, 2015 at a meeting of the BIS board. Rajan had joined the BIS board in December 2013. As vice-chairman, Rajan will work with BIS chairman Jens Weid mann, who is also president of Germany’s Bundesbank. Prior to Rajan, former RBI governor Y V Reddy had a key role as chairman of the BIS Asian Consultative Council which comprised all governors of BIS member central banks in the Asia-Pacific region.

BIS Roles:-

As an organization of central banks, BIS seeks to bring more predictability and transparency in monetary policy . The framework for regulations that prescribe capital requirement for banks is also prescribed by the BIS. The capital norms are known as Basel norms, named after the location of the BIS headquarters where they were framed.

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