RBI chief Subbarao gets 2-yr extension

"It (extension) will be good because at this point of time, extension of the RBI Governor is needed. Though there was time till September, we decided (that) we should do it quickly to ensure that there is no uncertainty," Finance Minister Pranab Mukherjee told reporters after announcement of Subbarao`s extension as head of the country`s monetary authority.

Subbarao, who has played a key role in steering the country out of the global financial meltdown following the fall of America`s iconic investment banker Lehman Brothers in September, 2008, will continue as RBI chief till September 5, 2013.

"He (Subbarao) is doing good job and he has already earned his reputation as central bank Governor in the various deliberations of the G-20, where Finance Ministers and central bank governors meet and take decisions," Mukherjee said.

Subbarao was to retire in September following the completion of a three-year term. "The Prime Minister approved the extension to D Subbarao, Governor of RBI, for two years," a PMO spokesman said.