Shaktikanta Das, who led India’s central bank for six years, has been replaced as the Reserve Bank of India’s (RBI) next governor by Sanjay Malhotra, who will hold the position for three years.
How is the Governor of the RBI appointed?
According to the Reserve Bank of India Act, 1934, the central government appoints the RBI Governor, with the final decision being made by the Appointment Committee of the Cabinet (ACC), chaired by the Prime Minister.
Candidates are shortlisted by the Ministry of Finance’s Department of Financial Services (DFS) according to their suitability, experience, and qualifications. Experts, bureaucrats, economists, and other sources are also consulted for recommendations.
Although the RBI Act doesn’t specify any particular requirements, the government usually takes into account people with experience in public administration, banking, finance, or economics.
Given his extensive background in finance, governance, and policymaking, Sanjay Malhotra was an appropriate option to lead India’s central bank.
