Professor Karandikar currently Director, Chennai Mathematical Institute has distinguished himself in the fields of probability theory, stochastic processes, derivative pricing and risk modelling. Professor Karandikar is an expert in cryptography which has wider application in electronic banking; an area of great interest to all of us in the Reserve Bank. Professor Karandikar is also a renowned psephologist.
With foreign exchange system reform introduced in 1994, foreign exchange purchase and sale was required to be effected through the banking system and a nation-wide inter-bank foreign exchange market was thus put into place, leading to the formation of the so-called managed floating foreign exchange rate system based on market supply and demand of foreign exchange. Such a system has since remained unchanged.