The Reserve Bank of India (RBI) has named Sanjay Malhotra as its 26th Governor, succeeding Shaktikanta Das, whose six-year tenure concludes on December 10, 2024. Malhotra will officially take charge on December 11, stepping into one of the most pivotal roles in India’s economic framework.
A Proven Bureaucratic Veteran
Sanjay Malhotra, a 1990-batch Indian Administrative Service (IAS) officer of the Rajasthan cadre, is currently serving as the Secretary of the Revenue Department under the Ministry of Finance. Reporting directly to Finance Minister Nirmala Sitharaman, Malhotra has been instrumental in overseeing the nation’s financial policies, particularly in taxation.
Malhotra’s career spans over three decades in civil services, during which he has held key positions in various departments, including power, information technology, finance, and mines. He also served as Secretary of the Department of Financial Services, contributing to the management of India’s banking and insurance sectors. Notably, Malhotra was at the helm of REC Limited (formerly Rural Electrification Corporation) before his tenure at the Revenue Department, which began in 2022.
Educational Background
Malhotra’s educational credentials are equally impressive. He holds a degree in Computer Science Engineering from the Indian Institute of Technology (IIT) Kharagpur, one of India’s most prestigious institutions. Later, he pursued a Master’s in Public Policy from Princeton University in the United States, further equipping him for leadership in public administration.
The Challenges Ahead
As Malhotra assumes leadership at the RBI, he faces significant challenges. India is grappling with a GDP growth slowdown, marked by a decline to 5.4% in the second quarter of FY25 — the lowest in seven quarters. Inflation, another critical concern under the RBI’s purview, surged to 6.2%, exceeding the central bank’s comfort zone of 4%.
The monetary policy framework, banking regulations, and ensuring economic stability amid global uncertainties will be key priorities for Malhotra in his new role.
A Legacy to Build Upon
Succeeding Shaktikanta Das, who played a critical role during the COVID-19 pandemic and led the RBI through economic reforms, Malhotra inherits a robust but challenging landscape. Das’s last major address, delivered during the 52nd Monetary Policy Committee meeting on December 6, outlined the economic road ahead, setting the stage for Malhotra to continue driving India’s financial stability.
