Sanjay Malhotra appointed as new RBI Governor

Sanjay Malhotra, the Revenue Secretary, has been appointed as the Governor of the Reserve Bank of India (RBI). He will officially assume the role for a three-year term, starting from 11th December 2024, as confirmed by the government. Malhotra is a 1990-batch Indian Administrative Service (IAS) officer from the Rajasthan cadre. He holds a Computer Science degree from the Indian Institute of Technology, Kanpur, and a Master's in Public Policy from Princeton University in the US. Malhotra has significant experience in finance and taxation, both at the state and central government levels, according to the Department of Revenue website.

About Sanjay Malhotra:

• Sanjay Malhotra, a career civil servant, has been appointed as India’s new central bank governor, succeeding Shaktikanta Das after his six-year tenure.
• An engineering graduate, Malhotra was known within the federal finance ministry for his focus on data and efforts to build predictive models for government tax revenue.
• A colleague described him as a "hard taskmaster" who conducted daily review meetings and had an exceptional memory, focusing on micro details and reading between the lines.
• Malhotra is known for staying within his role and avoiding interference in matters not directly involving him.
• He shared a cordial relationship with Finance Minister Nirmala Sitharaman and was instrumental in resolving long-pending taxation issues, including the decision to tax online gaming companies.

From revenue secretary to RBI governor
Before assuming his new role, Malhotra served as Revenue Secretary, playing a key role in several economic reforms. His key contributions include:

• Rationalizing capital gains tax in the Union Budget.
• Overhauling income tax slabs in the new regime to encourage migration from the old system.
• Removing the windfall gains tax, benefiting the oil refining sector.
• Advocating for a 28% GST on online gaming in discussions with the GST Council.
• Malhotra’s extensive career includes:
• Serving as Chairman and Managing Director of the Rural Electrification Corporation (REC).
• Holding the position of Additional Secretary in the Ministry of Power.
• Between 2003 and 2018, he worked in various roles in his home cadre, focusing on mining, energy, and revenue departments.

About 25th RBI Governor Shaktikanta Das

• Shaktikanta Das was a key official in Prime Minister Narendra Modi's administration before being appointed RBI Governor and played a critical role during a period of strained relations between the government and the central bank.
• Prior to becoming RBI Governor, Das served as a Member of the 15th Finance Commission, India’s G20 Sherpa.
• With over four decades of experience in governance, Das held pivotal roles in both central and state governments,                     focusing on Finance, Taxation, Industries, Infrastructure.
• During his time at the Ministry of Finance, he was actively involved in crafting eight Union Budgets, demonstrating his deep expertise in fiscal policy.
• Das is a postgraduate from St. Stephen’s College, Delhi University.
• After assuming the position of RBI Governor, Das quickly restored confidence in the markets, which had been shaken by the abrupt resignation of his predecessor, Urjit Patel, following a dispute between the RBI and the government over surplus transfer issues.
• His steady leadership helped ease tensions and fostered greater collaboration between the RBI and the government.

About RBI:

• Governor: Sanjay Malhotra
• Founded: 1935
• Headquarters: Mumbai