`Since Governor Shaktikanta Das’s current three-year term expires tomorrow, December 10, the government is anticipated to make an announcement today, December 9, regarding the appointment of a new Reserve Bank of India (RBI) governor or to extend his term.
For a month, there has been a lot of speculation, which grew more intense over the weekend following Das’s trip to Delhi. According to sources, the visit may have been made as a courtesy call to recognise his efforts or in connection with talks about his extension.
Longest serving governor
Benegal Rama Rau, who served as RBI governor for seven and a half years in the 1950s, is the longest-serving governor, with Governor Das having served six years. RN Malhotra and Bimal Jalan both decided to resign early, despite receiving extensions as well.
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Shaktikanta Das’ appointment
Following the contentious resignation of his predecessor, Urjit Patel, when the RBI and the government couldn’t agree on matters like banking regulations and fiscal policy, Das was appointed as the 25th governor in 2018.
Das assumed leadership with a tactful but firm stance, highlighting the RBI’s independence while keeping the lines of communication open with the government.
Notable milestones in six years
The economic crisis brought on by the Covid pandemic was one of Das’s most significant obstacles.
Under his direction, the RBI cut the repo rate to a record low of 4 per cent in 2020, instituted loan moratoriums and liquidity infusion packages, and carried out previously unheard-of monetary easing.
Das has mostly been successful in reducing inflation through monetary policy interventions, even in the face of global challenges and supply-chain interruptions.
CPI inflation has cooled and is currently ranging between 5 per cent and 6 per cent after peaking at 7.79 per cent in April 2022. His policies have struck a balance between the two goals of promoting economic growth and containing inflation.
