- Sanjay Malhotra, a 56-year-old senior bureaucrat and seasoned policymaker, has been appointed Governor of the Reserve Bank of India (RBI).
- He will succeed Shaktikanta Das, whose tenure concluded after six years.
- Malhotra will serve a three-year term beginning December 9, 2024.
Who is Sanjay Malhotra?
Sanjay Malhotra has had an illustrious career spanning over 33 years, during which he has worked in various critical sectors.
The incoming RBI governor brings vast experience in finance and taxation at both state and central government levels.
Educational Background
- He graduated with a degree in Computer Science Engineering from IIT Kanpur in 1989.
- And has a Master’s degree in Public Policy from Princeton University, USA.
Civil Services
- Malhotra cleared the Union Public Service Commission Civil Services Examination (UPSC CSE) in 1990.
- He then joined the Rajasthan cadre as an IAS officer.
- He was one of the Directors in RBI’s Central Board as DFS secretary.
Career Achievements
Revenue Secretary, Ministry of Finance:
- Malhotra plays a key role in shaping tax policies—covering both direct and indirect taxes—and reviews tax-related proposals for the Budget.
- He has played a pivotal role in driving the recent surge in tax collections and also serves as the ex-officio secretary to the GST Council.
- Was instrumental in simplifying tax compliance and strengthening revenue systems.
Secretary, Department of Financial Services:
- He has focused on improving India’s banking and insurance sectors.
- Contributed to policies aimed at financial inclusion and sectoral reforms.
Experience Across Sectors:
- Power: Managed projects aimed at enhancing energy distribution and accessibility.
- Finance: Developed strategies to improve fiscal responsibility and economic growth.
- Mines: Spearheaded initiatives to modernize mining operations and resource management.
- Information Technology: Contributed to integrating technology for better governance.
What to expect from his tenure as RBI Governor?
Under Shaktikanta Das, the RBI has maintained steady rates for nearly two years due to inflation concerns.
Malhotra assumes leadership at a challenging moment for the central bank, facing mounting pressure to lower interest rates, according to Mint.
Strengthening Financial Stability:
- Focus on maintaining inflation control and monetary stability.
- Enhancing India’s economic resilience amidst global uncertainties.
Innovation in Banking:
- Encouraging digital banking and financial technology (FinTech) innovations.
- Strengthening cybersecurity and operational risks in the banking sector.
Boosting Credit Flow:
- Promoting ease of credit access for businesses and individuals.
- Supporting the growth of MSMEs (Micro, Small, and Medium Enterprises).
Global Economic Integration:
- Strategies to strengthen India’s financial standing in global markets.
- Policies to attract foreign investments while safeguarding domestic interests.
What does an RBI Governor do?
The RBI Governor serves as the custodian of India’s reserves and the protector of the currency’s external value.
Leading the Reserve Bank of India, the Governor plays a pivotal role in,
- Formulating, implementing, and monitoring India’s monetary policy.
- Every currency note bears the signature of the RBI Governor, symbolizing their authority.
- The Governor oversees the flow of credit to rural, agricultural, and MSME sectors, framing policies for priority areas and supporting agricultural banks.
- They also manage operations under the Foreign Exchange Management Act, 1999, ensuring smooth external trade, payments, and the orderly development of the foreign exchange market.
About the outgoing Governor
Governor Shaktikanta Das took office as the 25th RBI governor on December 12, 2018.
He was concurrently, serving as a member of the 15th Finance Commission and India’s G20 Sherpa at the time.
Das is retiring after six years as the head of the central bank, making him one of its longest-serving governors.
A former IAS officer, Das previously held key positions in the Ministry of Finance, overseeing the revenue and economic affairs portfolios.
Wrapping up
With his diverse experience and strong academic background, Malhotra is well-prepared to address the challenges and opportunities in India’s financial ecosystem.
As the 26th Governor, he is expected to bring a fresh perspective and dynamic leadership to the RBI, ensuring its policies align with India’s rapidly evolving economy.
