The Union government has announced the appointment of Revenue Secretary Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI) for a three-year term.
Malhotra will take over from Shaktikanta Das, who has successfully led India’s central bank for six years.
Sanjay Malhotra Appointed as New RBI Governor
Revenue Secretary Sanjay Malhotra has been named the new Governor of the Reserve Bank of India (RBI) for a three-year tenure. He is set to assume office later this week, succeeding Shaktikanta Das, whose six-year term concludes on December 10.
A seasoned IAS officer from the 1990 Rajasthan cadre, Malhotra brings over 30 years of expertise in public policy. He has held key positions, including Chairman and Managing Director of the state-owned REC and Secretary in the Department of Financial Services under the Ministry of Finance.
Malhotra takes on this critical role at a challenging time for the central bank. The RBI has maintained unchanged interest rates for nearly two years under Shaktikanta Das, citing inflation concerns. However, with economic growth slowing to 5.4% in the July-September quarter, a seven-quarter low, there is mounting pressure within the government to consider rate cuts to boost growth.
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Who is Sanjay Malhotra?
Sanjay Malhotra is a senior Indian Administrative Service (IAS) officer from the 1990 batch. He belongs to the Rajasthan Cadre, which means he has worked in various government positions in the state of Rajasthan.
Over the course of his career, Malhotra has worked in many important areas of the government, such as power, finance, taxation, information technology, and mining. His experience in these sectors has helped him take on various leadership roles in the administration.
One of the key positions Malhotra held was as the Chairman and Managing Director of the Rural Electrification Corporation Limited (REC). REC is a government company responsible for providing electricity to rural areas in India, and Malhotra played a major role in managing and guiding this organization.
Before he became the Revenue Secretary (a very important role in the government), Malhotra worked as the Secretary of the Department of Financial Services in the Ministry of Finance. In this role, he was involved in making important changes to the country’s financial systems.
He helped implement major financial reforms that improved the banking system in India. Additionally, he was the ex-officio Secretary to the Goods and Services Tax (GST) Council, which is responsible for deciding tax policies in India.
Malhotra has a deep understanding of finance and taxation, having worked in these fields both at the state level in Rajasthan and at the national level with the central government. He played a vital role in creating policies related to direct taxes (like income tax) and indirect taxes (like GST).
Malhotra’s academic background is also impressive. He is an engineering graduate in Computer Science from the prestigious Indian Institute of Technology (IIT) Kanpur. Later, he went on to earn a Master’s degree in Public Policy from Princeton University in the United States, which helped him build a strong foundation for his work in government.
Sanjay Malhotra’s appointment to the position of Revenue Secretary comes at a time when there are reports suggesting that the current Governor of the Reserve Bank of India (RBI), Shaktikanta Das, could be granted another extension in his term. This shows that there is a lot of change and movement happening in the country’s top financial and administrative positions.
How is the RBI Governor Appointed?
The Reserve Bank of India (RBI) Governor is appointed by the central government as per the provisions of the Reserve Bank of India Act of 1934. The appointment is made by the Appointments Committee of the Cabinet (ACC), which is headed by the Prime Minister.
Candidates for the position are shortlisted by the Department of Financial Services (DFS) in the Ministry of Finance, based on their qualifications, experience, and suitability. Recommendations are also sought from experts, economists, and bureaucrats.
Though the RBI Act does not specify detailed eligibility criteria, the government generally looks for individuals with expertise in economics, banking, finance, or public administration.
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FAQs
Q.1. Who is Sanjay Malhotra?
Ans. Sanjay Malhotra is a senior IAS officer from the 1990 batch, currently appointed as the Governor of the Reserve Bank of India, with over 30 years of experience in public policy and finance.
Q.2. What positions has Sanjay Malhotra held in the government?
Ans. Malhotra has held key roles, including Chairman of the Rural Electrification Corporation (REC) and Secretary of the Department of Financial Services in the Ministry of Finance.
Q.3. Why is Sanjay Malhotra’s appointment as RBI Governor significant?
Ans. His appointment comes at a challenging time for the RBI, with mounting pressure to consider rate cuts to boost economic growth amidst slowing economic activity.
Q.4. What is Sanjay Malhotra’s educational background?
Ans. Malhotra holds a degree in Computer Science from IIT Kanpur and a Master’s in Public Policy from Princeton University, USA.
Q.5. How is the RBI Governor appointed?
Ans. The RBI Governor is appointed by the central government, based on recommendations from the Appointments Committee of the Cabinet (ACC), considering candidates with expertise in economics and finance.
