The term for Reserve Bank of India governor Shaktikanta Das is likely to be extended by the Indian government for the second consecutive time. This would be both momentous and unprecedented, as an extension would make Das the RBI Governor to serve for the longest period after Benegal Rama Rau, who served RBI from 1949 till more than seven years in 1957.
Das is a trusted bureaucrat in the Prime Minister Narendra Modi’s administration; he was appointed RBI governor in December 2018, and there was, at that time, a lot of tension in the government-regulator relation. Das has successfully weathered every challenge the Reserve Bank of India has given him since being appointed and has received praise for his leadership in periods of economic uncertainty and regulatory change. His current term runs until December 10, 2024, but sources close to the situation say an extension is likely for a year.
According to three sources directly aware of the development, no other candidates are being evaluated, and no selection committee has been established to consider alternatives. The move to extend Das’s term is expected to be locked in after the completion of the current state-level Maharashtra elections, as restrictions by the Election Commission have intervened. The Commission prohibits the ruling party from making significant appointments during the election period to prevent any potential influence on voter behavior.
The news is yet to be officially confirmed, although the finance ministry, Prime Minister’s Office, and RBI did not comment on it so far. However, sources say that the final decision will be taken by PM Modi – who generally has a say over key government appointments.
If the extension goes according to plan, it would further solidify Shaktikanta Das’s place as central in India’s economic policymaking. His term has already gone well past the more recent five-year terms that have been in vogue, and his tenure is likely to represent the defining example of the government’s preference for continuity and stability in leadership at the RBI.
