Shaktikanta Das may again be re-appointed as RBI Governor

The government is considering extending the tenure of Reserve Bank of India (RBI) Governor Shaktikanta Das for a second term, as reported the sources. If the extension is confirmed, it would make Das the longest-serving RBI Governor since the 1960s.

Current Term and Historical Context

Shaktikanta Das has served as the RBI Governor since December 2018, making him the head of the central bank for more than five years—already longer than the typical five-year term that most recent RBI Governors have served. His current tenure is set to end on December 10, 2024. If extended, Das would surpass the record of Benegal Rama Rau, who served as RBI Governor for 7.5 years, from 1949 to 1957. This extension would place him in a rare category of long-serving central bank leaders in India.

Selection Process and Timing

According to sources, no other candidates are under consideration for the position at present, and no formal selection committee has been established. The final decision regarding Das’ extension is expected to be made after the conclusion of polling in the Maharashtra state elections. The timing of the announcement is important because India’s Election Commission imposes restrictions on appointments during election periods to ensure that such decisions do not influence voters or the outcome of elections.

Shaktikanta Das’ Leadership and Impact

Shaktikanta Das, a seasoned bureaucrat, was appointed as RBI Governor during a time of strained relations between the government and the central bank. Over the course of his tenure, Das has overseen critical decisions, especially during the COVID-19 pandemic, when the central bank played a key role in stabilizing the economy. He also led efforts to control inflation, stabilize the rupee, and support economic growth. His leadership has been regarded as calm and steady, maintaining a balance between the central bank’s independence and working in coordination with the government’s economic goals.

Reason for Extension

Das’ ability to navigate complex challenges and maintain a positive relationship between the RBI and the government is a key reason why his tenure extension is being considered. Extending his tenure would ensure continuity in leadership during a period when the Indian economy is facing inflationary pressures, global economic uncertainties, and the need for a stable and predictable monetary policy.

In summary, the government’s potential decision to extend Shaktikanta Das’ tenure as RBI Governor reflects confidence in his leadership, especially in addressing significant economic challenges. The extension would not only make him the longest-serving RBI Governor in recent history but also provide continuity during a crucial period for India’s economic stability.