In a significant move, the Central Government of India has appointed Sanjay Malhotra, the Secretary (Revenue) in the Ministry of Finance, as the next Governor of the Reserve Bank of India (RBI). This appointment comes at a crucial time when the Indian economy is grappling with the aftermath of the COVID-19 pandemic and is in the process of recovery. Malhotra will be replacing Shaktikanta Das, who has served as the RBI Governor for six years, making him the second-longest serving RBI Governor.

Sanjay Malhotra, a 1990 batch Indian Administrative Service (IAS) officer of the Rajasthan cadre, is an Engineering Graduate in Computer Science from the Indian Institute of Technology, Kanpur. He also holds a Master's in Public Policy from Princeton University, US. With a career spanning over 33 years, Malhotra has demonstrated leadership and excellence in various sectors including power, finance and taxation, information technology, and mines.

Malhotra's Role in Finance and Taxation

In his current role as Secretary (Revenue) in the Ministry of Finance, Malhotra plays a pivotal role in tax policy formulation concerning direct and indirect taxes. His extensive experience in finance and taxation at the State as well as the Central Government level is expected to be instrumental in his new role as the RBI Governor. Prior to this, he held the post of Secretary in the Department of Financial Services under the Ministry of Finance, Government of India.

The appointment of Sanjay Malhotra as the new RBI Governor is effective from December 11, 2024, and will continue for three years, as per an official notification from the Department of Personnel and Training. His extensive experience in finance and taxation, coupled with his demonstrated leadership in various sectors, is expected to guide the central bank's policies in the coming years.

Shaktikanta Das's Tenure as RBI Governor

Shaktikanta Das, the outgoing RBI Governor, was first appointed in December 2018, following the resignation of the then-central bank chief, Urjit Patel. Das's tenure as RBI Governor marked a smoother functioning relationship between the central bank and the Finance Ministry, following the friction that marked his predecessor's tenure.

Das, also a former IAS officer, served as a secretary in the Department of Revenue and Department of Economic Affairs of the Finance Ministry, where he directly worked on eight Union Budgets. He was also a member of the 15th Finance Commission and a Sherpa for India at the G20. Furthermore, Das served as India's alternative governor in the World Bank, Asian Development Bank, New Development Bank, and Asian Infrastructure Investment.