The Reserve Bank of India's Governor, Mr. D Subbarao will now be directly in charge of the monetary policy department, which was earlier under Deputy Governor, Mr. Subir Gokarn, who has retired.

The Monetary Policy Department handles policy issues, including interest rates. The third quarter review of monetary policy is scheduled to be announced on January 29th.

The RBI Governor, Mr. Subbarao indicated in the last policy review that there could be softening of policy rate in the January policy review. Gokarn's three year term had ended in November 2012, but the government had given him one month extension to hold on the office which expired on December 31st, 2012.