In a significant move, the government has appointed senior IAS officer Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI), ending months of speculation about a possible extension for the current governor Shaktikanta Das.
He currently serves as the Secretary (Revenue) in the Ministry of Finance and has previously held the position of Secretary in the Department of Financial Services.
Mr Malhotra, a seasoned bureaucrat, will take over as the 26th governor of the RBI, with his tenure set to begin on December 11, 2024.
Malhotra, a 1990-batch Rajasthan cadre IAS officer, will assume office for a period of three years. His appointment comes at a critical time for the central bank, as it faces challenges such as inflation control and slowing economic growth.
Mr Malhotra succeeds Shaktikanta Das, an IAS officer of 1980 batch from Tamil Nadu cadre, whose term is set to conclude on December 10, 2024. Mr Das, appointed as RBI Governor in December 2018, has already exceeded the typical five-year tenure, marking a historic period of leadership at the apex bank. During his time at the RBI, Das steered the institution through turbulent economic times, including tackling inflation and guiding monetary policy.
Before taking over as RBI Governor, Das played an instrumental role in the Indian government, notably as a key official during a challenging period marked by strained relations between the government and the central bank. He was also involved in shaping India’s fiscal landscape as a member of the 15th Finance Commission and served as India’s G20 Sherpa. With over four decades of experience in governance, Das has held pivotal roles across the central and state governments, particularly in finance, taxation, and infrastructure. A postgraduate from St. Stephen’s College, Delhi University, Das was actively involved in the preparation of eight Union Budgets, showcasing his expertise in fiscal policy.
ABOUT SANJAY MALHOTRA
Mr Malhotra is a Computer Science graduate from the IIT, Kanpur, and has a Master’s in Public Policy from Princeton University, US. In a career spanning over 33 years, Mr Malhotra has worked in several sectors including power, finance and taxation, information technology, mines etc.
He assumed the role of Chairman and Managing Director of REC in November 2020. Before this, he served as Additional Secretary in the Ministry of Power. In 2022, while serving as the Secretary in the Department of Financial Services (DFS), Sanjay Malhotra was nominated by the Central Government as a Director of the RBI, before later being appointed as the Revenue Secretary.
With vast experience in finance and taxation across both state and central governments, he has been a key figure in shaping tax policies. According to the Department of Revenue’s website, Mr. Malhotra played a pivotal role in the formulation of both direct and indirect tax policies.
The Central Board of Directors oversees the functioning of the RBI, and given Mr Malhotra’s extensive experience in this domain, he was a strong contender for the position of RBI Governor. He has a long-standing background in finance and taxation at both the state and central government levels.
With Malhotra now stepping into the role, attention will turn to how he navigates the complex economic landscape, continuing the RBI’s crucial work in stabilizing the economy and managing inflation.
