The service tenor of the governor of Reserve Bank of India, Mr Duvvuri Subbarao has been granted a two year extension till 2013 by the government of India. Keeping in view the current turbulence presiding in the global market along with the diligence by which Subbarao has worked towards taming inflation figures in the country, it has been consented that his term in the present post needs to be extended.

The approval has been granted by Prime Minister, Mr Manmohan Singh. Subbarao's tenor now remains extended till September 04, 2013.

Since the time he took post as RBI governor in 2008, he has had to deal with multiple issues arising both in the domestic as well as global forefront starting with the global economic meltdown.

He had to initially bring down rates so as to generate public interest in borrowing while present situation of towering inflation has led him to raise rates.

Presently, the shake up in the US stock market following the downgrading of US' credit rating by agency Standard & Poor's has again triggered the threat of recession on the global front. The country thus needs to be driven by strong hands.

Former RBI governor YV Reddy has exclaimed the extension of Subbarao's tenor as the "right thing has happened".

"Policy challenges for me were less than what it is for the governor now. Except that I had to face considerable criticism, particularly domestically, and so I had to defend. Problems were not so complex, but attitudes were. But now the problems are more complex," said Reddy while speaking about his term as the governor.