Centre Could Likely Extend Shaktikanta Das’ Tenure As RBI Governor For Atleast One Year, Says Report

The report noted that Das was one of the most trusted bureaucrats in Prime Minister Narendra Modi’s administration before he was chosen to lead the banking regulator in December 2018

An extension would make him the longest-serving chief since Benegal Rama Rau, who served in the position for seven and a half years between 1949 and 1957.

Source : PTI

Indian government is likely to extend the term of the Reserve Bank of India (RBI) governor, Shaktikanta Das, for a second time, media reports said. The authorities are possibly planning to let Das continue as the head of the central bank.

This will make him the longest serving chief since the 1960s, reported Reuters. The report noted that Das was one of the most trusted bureaucrats in Prime Minister Narendra Modi’s administration before he was chosen to lead the banking regulator in December 2018. At the time, the relationship between RBI and the government was under serious pressure.

Citing sources with direct knowledge of the matter, the news agency reported that Das could be allowed to maintain his position as the governor of the RBI. 

The current term of Das is due to expire on December 10, 2024. He has already been at the helm of the RBI for longer than the typical five-year maximum period. A further extension would make him the longest-serving chief since Benegal Rama Rau, who served in the position for seven and a half years between 1949 and 1957.

The report quoted two government sources in the know and said that no other candidates are currently under consideration nor has any selection committee been set up by the government. This makes it likely that Das’ term will be extended for at least one more year.

The decision will be made public after the polling in Maharashtra state elections is complete, another source noted, the news agency said. The Election Commission doesn’t allow the ruling party to make any ad-hoc appointments during polling that could have an impact on voter behaviour.

The report cited the sources who wished to remain anonymous and said the final decision on the appointment will be taken by the Prime Minister.