RBI Governor Shaktikanta Das Likely to Get Second Term Extension
The government is planning to extend the tenure of Reserve Bank of India Governor Shaktikanta Das, sources said. In the event of this decision going ahead, that would make him the longest-serving central bank chief since the 1960s.
Shaktikanta Das, who has been leading the RBI since December 2018, has already crossed the typical five-year term seen in recent decades. His term is scheduled to expire on December 10, 2024. An extension beyond that will make him the country's longest-serving governor since Benegal Rama Rau had held the position for 7.5 years between 1949 and 1957.
According to sources mentioned in the report, no other candidates are being considered for the position at this time, and no selection committee has been formed. The extension is expected to be announced after the completion of polling for the Maharashtra state elections.
In India, the Election Commission bars appointments in such periods to prevent decisions that may prejudice voters. It is the Prime Minister who must eventually take a final call on Das's term.
Shaktikanta Das, a seasoned bureaucrat, took over the reins of RBI during a period of strained ties between the government and the central bank.
In such a tenure, he has handled many critical decisions on policy measures - what to do with the economy during the COVID-19 pandemic, for instance. Since his tenure, he has worked toward managing inflation while keeping the rupee stable, as well as supporting economic growth.
His ability to keep a steady relationship between the central bank and the government has been noted as being one of the key factors in the decision to consider extending his tenure.
If extended, Das' leadership would be an assurance of continued stability at a time when the Indian economy is indeed facing inflationary pressures, global economic uncertainty, and needs steady monetary policy.
