Sanjay Malhotra appointed as new RBI Governor, succeeding Shaktikanta Das

New RBI Governor Sanjay Malhotra will have to balance growth challenges with high inflation and face pressure to cut rates at the next MPC meeting in February

PGurus Newsdesk

December 9, 2024

New RBI Governor Sanjay Malhotra will have to balance growth challenges with high inflation and face pressure to cut rates at the next MPC meeting in February

Revenue Secretary Sanjay Malhotra appointed a new RBI Governor as Shaktikanta Das’ term ends

The Appointments Committee of the Cabinet has appointed Sanjay Malhotra, a 1990-batch Indian Administrative Service (IAS) officer, as the new Governor of the Reserve Bank of India (RBI) for a three-year term. Malhotra will succeed Shaktikanta Das, whose term as RBI Governor has come to an end.

An experienced bureaucrat with a diverse portfolio

Malhotra, currently serving as Revenue Secretary in the Ministry of Finance, brings over 33 years of administrative experience in key sectors such as finance, taxation, power, information technology, and mining. His leadership across these diverse domains is expected to guide India’s central bank amid ongoing global economic challenges.

Educational and professional background

An alumnus of the Indian Institute of Technology (IIT) Kanpur, Malhotra holds a degree in Computer Science Engineering. He further enhanced his policy expertise with a master’s degree in Public Policy from Princeton University, US.

His extensive career includes leadership roles in both state and Central government administrations, where he played pivotal roles in policy formulation and implementation.

Key career milestones

Department of Financial Services Secretary: Malhotra oversaw India’s financial and banking sectors, introducing reforms that strengthened the nation’s banking infrastructure and enhanced regulatory frameworks.
Chairman and Managing Director, REC Ltd.: Under his leadership, the state-run power financing company experienced significant growth, playing a crucial role in India’s energy sector development.
Revenue Secretary (December 2022 – Present): As Revenue Secretary, Malhotra spearheaded India’s tax policy reforms for both direct and indirect taxes, ensuring robust tax collections critical for the country’s fiscal stability. His efforts contributed to record-breaking tax revenue inflows during his tenure.
Ex-Officio Secretary, GST Council: Malhotra also served as the ex-officio Secretary to the Goods and Services Tax (GST) Council, where he played a crucial role in harmonizing fiscal policies among states while maintaining national tax stability.
Non-Tax Revenue Oversight: Beyond tax administration, Malhotra managed India’s non-tax revenue sources, including income from public sector units (PSUs), interest on loans, and service fees.

Challenges ahead as RBI Governor

As the 26th Governor of the RBI, Malhotra will face several pressing economic challenges, including:

Inflation Control: Balancing inflationary pressures with economic growth.
Monetary Policy Management: Crafting interest rate policies to support India’s fiscal goals.
Global Economic Uncertainty: Navigating through fluctuating global markets, currency valuation concerns, and potential economic slowdowns.
Financial Sector Reforms: Ensuring financial sector resilience through regulatory oversight and technological advancements.

Malhotra’s proven track record in tax policy, fiscal management, and financial services provides a solid foundation for leading the Reserve Bank of India through the next phase of India’s economic development. His appointment is seen as a strategic move aimed at ensuring monetary stability and fostering sustainable economic growth.

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