By Vineet Kumar 
Revenue Secretary Sanjay Malhotra Named RBI Governor for Three Years
In a significant development, Revenue Secretary Sanjay Malhotra has been appointed as the new Governor of the Reserve Bank of India (RBI) for a three-year term. The announcement, made via a Department of Personnel and Training (DoPT) notification dated December 9, 2024, confirms that Malhotra will succeed Shaktikanta Das on December 11.
Who is Sanjay Malhotra?
Sanjay Malhotra, a 55-year-old IAS officer of the 1990 Rajasthan cadre, brings a wealth of experience to his new role. An alumnus of IIT Kanpur with a master’s degree in Public Policy from Princeton University, he has an extensive background in public finance, taxation, and economic administration.
Malhotra’s notable achievements include:
1. Revenue Secretary: Instrumental in driving record-breaking tax collections, Malhotra played a key role in shaping direct and indirect tax policies.
2. Secretary, Department of Financial Services: He spearheaded major banking and financial sector reforms during his tenure.
3. Chairman & MD, REC: His leadership at REC saw significant strides in energy sector reforms.
4. Additional Secretary, Ministry of Power: Malhotra was deeply involved in implementing a ₹3 lakh crore power distribution reform plan.
Challenges Ahead for the New RBI Governor
As the RBI Governor, Sanjay Malhotra steps into one of the most critical roles in India’s economic framework. He is expected to tackle pressing challenges, including:
Inflation Control: Ensuring inflation remains within the RBI’s target range amidst global economic uncertainties.
Rupee Stability: Managing currency fluctuations in light of ongoing geopolitical tensions.
Economic Growth: Balancing monetary policies to support sustainable growth while maintaining financial stability.
Reactions to the Appointment
The announcement of Malhotra’s appointment has drawn a mix of surprise and praise from experts:
Pronab Sen, Former Statistician: “A little surprised, but not entirely.”
Rajnish Kumar, Former SBI Chairman: “Finance Ministry bureaucrats have been at RBI before, so this aligns with historical precedence.”
HR Khan, Former Deputy Governor: “RBI’s robust processes help newcomers quickly adapt and appreciate the institution’s depth.”
Deepali Pant, Former RBI ED: Highlighted key areas for the new Governor, including inflation control and monitoring geopolitical developments.
What Lies Ahead for RBI Under Malhotra?
With his proven track record in financial administration and policy-making, Malhotra is well-equipped to handle the complex demands of the central bank. His expertise in taxation and fiscal policies is expected to contribute significantly to India’s monetary strategy, especially as the nation navigates economic recovery and global challenges.
This appointment marks a pivotal moment in India’s economic journey, and all eyes will be on Sanjay Malhotra as he takes charge at Mint Street.
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