Revenue Secretary Sanjay Malhotra appointed as the new RBI Governor

Sanjay Malhotra, a 1990-batch IAS officer from the Rajasthan cadre, has been appointed the 26th Governor of the Reserve Bank of India (RBI), succeeding Shaktikanta Das.

His three-year term begins Tuesday, December 11, according to a notification by the Department of Personnel & Training.  

Malhotra, currently serving as Revenue Secretary in the Ministry of Finance, brings extensive administrative expertise spanning finance, taxation, power, and IT sectors.

He is an alumnus of IIT Kanpur with a degree in computer science engineering and holds a Master's in Public Policy from Princeton University.  

A new leader amidst economic challenges  

The transition occurs at a critical juncture for the Indian economy, which is grappling with high inflation and slowing growth.

The GDP expanded at its slowest rate in seven quarters during the July-September period, reflecting global and domestic challenges.  

Shaktikanta Das, whose tenure ends December 10, leaves behind a legacy of steering the central bank through historic moments, including the Covid-19 pandemic and demonetisation.

Under his leadership, the RBI adopted emerging technologies like blockchain and AI to enhance banking systems. Most recently, the central bank launched Mulehunter.AI to combat fraud accounts.  

Policy priorities for Malhotra  

As Governor, Malhotra will face significant hurdles, including maintaining a balance between growth and inflation.

Retail inflation surged to 6.21% in October, exceeding the RBI's comfort zone of 4%, with a permissible range of ±2%.

His decisions on monetary policies, including interest rates, will be closely watched as ministers advocate for lower rates to boost private investments.  

At the Monetary Policy Committee meeting on December 8, the RBI kept the repo rate unchanged but cut the Cash Reserve Ratio (CRR) by 50 basis points to increase liquidity in the banking system.

This measure aims to mitigate economic pressures without compromising financial stability.  

Reflections on Das’ term  

Das, who took office in December 2018 after Urjit Patel's resignation, is celebrated for his adept management during crises. In October, he was named the world's top central banker by Global Finance for the second consecutive year.

As Economic Affairs Secretary, Das played a pivotal role in demonetisation, ensuring the smooth circulation of new currency notes.