There is a huge increase in the salary of Reserve Bank Governor Urjit Patel along with the Deputy Governors. The government has increased their basic salaries by more than twice. Urjit Patel's basic salary has been increased to Rs. 2.5 lakh and Deputy Governor’s salary has been increased to Rs. 2.25 lakh. This change is effective from January 1, 2016. Prior to this increase, the basic salary of the Governor of the Reserve Bank was Rs.90.000 per month, while the basic salary of its Deputy Governor was Rs. 80,000 per month.
The monthly salary of these top executives of RBI included basic pay, dearness allowance (DA) and other allowances. So till November 30, 2016, Patel received a total of Rs. 2, 09,500 as per month salary.
The dearness allowance of Central employees is extended from time to time by the Central Government. Prior to the increase, Patel got Rs. 1, 12,500 as a basic salary and Rs. 7000 under other allowances. In this way his total monthly salary was Rs. 2, 09,500. If we consider the increase in basic pay only, then the new salary of Urjit Patel reached up to RS. 3.70 lakh. Although, despite this increases, the salary of Governor and Deputy Governor is much less compared to the top executives of other big banks (who work according to the RBI rules).
Under Right to Information (RTI) Central Bank has informed that according to the information given by the Finance Ministry on February 21, the basic pay of the Governor and Deputy Governors has been amended, but the Central Bank did not disclose that how much salary is increased. Therefore, we try to find out the current salary of RBI governor on the basis of an old pay scale that which type of facilities and reimbursement of expenses are given to the RBI governor along with the basic pay.
The RBI Governor is a Class 1 Group officer and the salary he receives comprise the following benefits: -
1. Basic pay : ₹90,000/- annual increment ₹1,600/-
2. Grade Allowance: ₹10,000/-
3. Monthly Reimbursements:
a. Educational: ₹2,000/-
b. Household: ₹4,000/-
c. Telephonic: ₹3,500/-
4. Conveyance Allowances: (Monthly)
a. Petrol for car owners: 270 litres, others: ₹6,000/-, +30 litres for metros
b. Driver allowance: ₹7,000/-
c. Car Maintenance allowance: ₹2,500/-
5. Official Car & Home A/c:
a. Car: Max. Price ₹8, 00,000/-b. A/c: Max. Price ₹20,000/-
Additional 200 units of free electricity is also provided by the employer for paying AC costs. Condition for purchase of car is that on retirement, the officer will be buying the car at Rs. 50,000 or the actual depreciated value of car, whichever is higher.
6. Annual Reimbursements
a. Medical: ₹5,500/-
b. Book Grant: ₹7,000/-
c. Briefcase: ₹9,000/-
In summary, it can be said that now the Governor's salaries have become good with reference to the importance of his work but if we compare his salary with the top executives of the other private financial institution then it seems very low.