The government of India has extended the term of central bank Governer Duvvri Subbarao by 2 years  to ensure continuity of India’s monetary policy at a time when the whole world is reeling under the fallout of the downgrade of the sovereign rating of the U.S, Economic Times reported.

Finance Minister Pranab Mukherjee said, “It (extension) will be good because at this point of time, extension of the RBI Governer is needed. Though there was time till September, we decided (that) we should do it quickly to ensure that there is no uncertainty.”

Subbarao, who played a key role in steering India out of the gobal 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 is doing good job and he has already earned his reputation as central bank Governer in the various deliberations of the G-20, where Finance ministers and central bank governers meet and take decisions,” Pranab Mukherjee said. Governer Subbarao was to retire in September following the completion of a three-year term.