Sanjay Malhotra has officially assumed office as the 26th Governor of the Reserve Bank of India (RBI) for a three-year term. At 56, Malhotra brings with him a wealth of experience as a seasoned bureaucrat, having served over three decades in civil service.
His appointment marks a significant transition, as he is the first RBI governor since Duvvuri Subbarao to make a direct move from the Finance Ministry to the helm of India’s central bank.
An alumnus of Princeton University, Malhotra succeeds Shaktikanta Das, who led the RBI for six years and played a crucial role in steering the country’s monetary policy through challenging times.
Malhotra’s extensive tenure in public service includes pivotal roles that have shaped key aspects of India’s economic policies.
Before taking up his current position, Malhotra served as the Revenue Secretary in the Ministry of Finance. During this time, he spearheaded several transformative economic reforms.
Among his notable contributions was the rationalisation of capital gains tax in the Union Budget and a revamp of the income tax regime, encouraging taxpayers to migrate to the new system.
He was instrumental in removing the windfall gains tax, a decision that provided significant relief to the oil refining sector. Malhotra also advocated for imposing a 28 per cent GST on online gaming, a subject that has been a focal point in discussions within the GST Council.
Malhotra’s career has been diverse and impactful. He served as Chairman and Managing Director of the Rural Electrification Corporation (REC), where he contributed to enhancing India’s rural energy infrastructure.
As Additional Secretary in the Ministry of Power, he worked on initiatives aimed at improving the country’s energy distribution systems. His expertise extends to his home cadre, where he served across departments such as mining, energy, and revenue between 2003 and 2018.
His appointment as RBI Governor comes at a time when the Indian economy is navigating a complex global economic landscape. Inflationary pressures, currency fluctuations, and the challenges of sustaining robust economic growth require deft handling.
As a seasoned policymaker with a strong understanding of fiscal and monetary dynamics, Malhotra is well-positioned to address these issues effectively.
Government circles have taken note of Malhotra’s appointment with interest, particularly due to his direct transition from the Finance Ministry. This shift highlights the importance of synergy between fiscal and monetary policies as India looks to strengthen its economic framework.
Follow us
