Former RBI Governor Y V Reddy will be the Chairman of 14th Finance Commission, Finance Minister P Chidambaram said today.

The Finance Commission has been asked to submit its report by October 31, 2014.

Finance Commission, a constitutional body, is set up every five years. Besides other things, the Commission lays down principles governing the grants-in-aid to states and other local bodies for a five-year period beginning April 1, 2014.

Prior to joining RBI as its Governor in September 2003, Reddy was India's Executive Director on the Board of the International Monetary Fund.

The 13th Finance Commission was headed by former Finance Secretary Vijay Kelkar.