- The Union government has appointed revenue secretary Sanjay Malhotra as the next governor of the Reserve Bank of India (RBI) for a three-year term.
- Malhotra, a 1990 batch IAS officer from the Rajasthan Cadre, will succeed Shaktikanta Das, who has served as RBI governor for six years.
- His extensive experience spans power, finance, taxation, information technology, and public policy.
Who is Sanjay Malhotra?
Sanjay Malhotra is a highly qualified bureaucrat with an illustrious career:
- Educational Background: He holds an engineering degree in Computer Science from IIT Kanpur and a Master’s in Public Policy from Princeton University, USA.
- Career Highlights:
- Played pivotal roles in policy formulation for direct and indirect taxes.
- Served as Chairman and Managing Director of the Rural Electrification Corporation Limited.
- Secretary of the Department of Financial Services, where he spearheaded financial reforms and strengthened the banking sector.
- Ex-officio secretary to the GST Council, contributing to key tax reforms.
Why is his appointment significant?
Malhotra’s appointment comes amidst speculation of an extension for the outgoing governor Shaktikanta Das. His expertise in financial governance, taxation, and public policy positions him as a strategic choice for guiding India’s central bank during pivotal economic times.
How is the RBI Governor Appointed?
The process of appointing the RBI Governor is governed by the Reserve Bank of India Act, 1934:
- The Appointments Committee of the Cabinet (ACC), chaired by the Prime Minister, finalizes the selection.
- The Department of Financial Services in the Ministry of Finance shortlists candidates, considering qualifications, experience, and suitability.
- Although the RBI Act does not specify detailed criteria, individuals with expertise in economics, banking, finance, or public administration are preferred.
Conclusion
Sanjay Malhotra’s appointment as RBI Governor underscores the Centre’s focus on leveraging seasoned expertise to navigate complex financial challenges. With his robust track record and multifaceted experience, Malhotra is expected to lead the Reserve Bank through India’s evolving economic landscape.
Leave a Reply